The Nifty IT index jumped nearly 4% on Tuesday, June 2, powered by the momentum gained by India's leading tech giants for the second straight session. Shares of Tata Consultancy Services, Infosys, and HCLTech rallied over 6% driving the Nifty IT index over 4% higher to hit an intraday high of 31,290.95 so far during the session amid the global AI rally. On Monday, Nvidia CEO Jensen Huang said that Indian IT firms are well-placed for AI implementation while adressing the GTC Taipei Keynote at COMPUTEX 2026 Event.
Shares of TCS rallied 6%, Infosys rallied 5.6% intraday, Tech Mahindra gained 2.03 %, and HCLTechnologies rallied 4.36% so far during the session. At the Computex 2026 event, Nvidia's Huang dispelled concerns that artificial intelligence might render traditional coding obsolete. He rejected fears of AI replacing software, instead emphasized that it will create the largest opportunity ever for software companies. Huang noted that emerging AI agents fundamentally rely on robust enterprise software to operate and interact. The global software demand continues to support a strong overall IT spending outlook.
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Nifty IT index extended gains for the second straight session.
According to Huang, Indian IT firms find themselves exceptionally well-positioned to capitalize on this structural shift, poised to act as key enablers in widespread AI implementation for enterprises worldwide. The global AI investment frenzy gained further momentum after Huang reiterated the massive AI infrastructure opportunity during the Computex keynote at Taiwan. The long-term expansion narrative is being heavily boosted by the emerging "AI factories" theme and an anticipated shift toward Agentic AI, which is expected to massively increase global compute and storage demand.
As the AI tech wave reshapes the broader sector, domestic companies such as E2E Networks, Anant Raj, and Netweb Technologies are increasingly being recognized as key plays for investors looking to capitalize on India's rapidly growing AI infrastructure ecosystem. Driven by Huang's comments on the AI optimisation for industries, tech stocks rallied in Asian markets, while AI stocks listed on the Nasdaq, NYSE remain in focus when US markets open for trading later today.
Wall Street picks AI rally
Overnight on Wall Street, the S&P 500 rose even as oil prices advanced, with Nvidia leading technology higher following the launch of a new chip for PCs. The broad market index advanced 0.26% to close at 7,599.96, while the Nasdaq Composite gained 0.42% to close at 27,086.81. The Dow Jones Industrial Average added 46.42 points, or 0.09%, and ended at 51,078.88. All three indexes reached new all-time intraday highs and closed at records. On Tuesday, Hong Kong's Hang Seng index added 0.13%, while mainland China's CSI 300 was up 0.1%. This comes after Asian tech stocks rallied on Monday
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