Infosys, HCLTech, Tech Mahindra, TCS: Why are IT stocks rising today?
Indian IT stocks rallied sharply on Monday after the United States and China struck a temporary trade truce, suspending tariffs on select goods for 90 days starting May 14.The breakthrough, following high-level talks in Geneva, lifted sentiment across global markets, particularly benefiting export-oriented sectors like information technology.The Nifty IT index surged over 6%, emerging as the top sectoral gainer on the NSE. Oracle Financial Services Software (OFSS) led the rally with a nearly 9% jump, followed by Coforge and Persistent Systems, which rose over 8% each. Blue-chip heavyweight Infosys gained close to 8%.advertisementLTIMindtree advanced just over 7%, while HCLTech, Wipro, Tech Mahindra, Mphasis, and TCS posted strong gains in the range of 4.8% to 6.3%. The broader market echoed this optimism.
As of 2:54 pm, the Sensex was up 2815.41 points to 82,269.88, while the Nifty50 surged 886.40 points to 24,894.65.US-CHINA TRADE TRUCEUnder the trade agreement, the US will reduce tariffs on Chinese goods from 145% to 30%, while China will lower tariffs on American imports from 125% to 10%.Both countries agreed to retain a 10% base rate and suspend 24 percentage points of additional duties. China also committed to phasing out non-tariff barriers imposed since April 2025.US Treasury Secretary Scott Bessent said both sides shared a desire to avoid decoupling. The dtente, which also includes ongoing discussions led by Chinese Vice Premier He Lifeng and US Trade Representative Jamieson Greer, marks a significant cooling of tensions that had rattled global markets.advertisementInvestors cheered the move as a sign of easing geopolitical risk and a potential boost to global trade, with Indian IT firms well positioned to benefit from renewed business confidence in their largest export market.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)Tune InTrending Reel
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