In a significant turn of events today, Indian IT stocks have experienced a sharp surge, with the Nifty IT index climbing by over 6%, emerging as the top-performing sector on the National Stock Exchange (NSE). The overall optimism in the market stems from a historic trade truce between the US and China, which has sent ripples of hope across the global financial landscape.
The deal, which will suspend tariffs on select goods between the two economic giants for 90 days starting May 14, has had a profound effect on export-driven sectors, particularly information technology. Oracle Financial Services Software (OFSS) led the rally, seeing an almost 9% jump, while Coforge and Persistent Systems followed closely with gains of over 8%. Among the blue-chip giants, Infosys stood out, rising by nearly 8%.
The mood in the IT sector remained buoyant as LTIMindtree advanced by over 7%, and other major players such as HCLTech, Wipro, Tech Mahindra, Mphasis, and TCS recorded strong upticks ranging from 4.8% to 6.3%. This surge has also contributed to the broader market’s positive performance, with the Sensex up by 2815 points and the Nifty50 soaring by 886 points as of 2:54 pm.
This fresh optimism comes on the back of a breakthrough in the US-China trade talks, where both nations agreed to significantly reduce tariffs. As per the agreement, the US will decrease its tariffs on Chinese goods from 145% to 30%, while China will lower its duties on American imports from 125% to 10%.
US Treasury Secretary Scott Bessent shared that both sides aim to avoid “decoupling,” signaling a shared commitment to resolving trade tensions. The truce marks a cooling of the geopolitical climate, encouraging a surge of positive sentiment across global markets. With their extensive export networks, Indian IT firms are seen as poised to benefit from this renewed business confidence in the US, their largest export market.
The shift in trade dynamics has not only lifted the spirits of investors but has also fostered renewed optimism about global trade, giving the IT sector in India a new lease on life.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
