Nifty IT records biggest intraday jump in 9 months. What sparked the rally in tech stocks today?
IT stocks today: Domestic information technology (IT) stocks rebounded sharply in Wednesday’s trading session. HCL Tech’s share price ended the day up 7.7% at ₹1,594 apiece, while Wipro’s share price gained 4%, and Infosys’ share price rose 3.7%.
All 10 constituents of the Nifty IT index closed in the green, driving the index up by 4.34%—its biggest single-day gain since July 2024, when it had rallied 4.53%. This stellar rebound after a notable drop in the previous trading session has also helped Indian benchmark indices extend their winning streak to the seventh consecutive trading session today, April 23.
Why did HCL Tech and other IT stocks soar sharply?
The sharp surge in tech stocks can be attributed to multiple factors that reignited investor interest. Chief among them was the strong revenue growth guidance from India’s third-largest IT firm—HCL Tech.
Although its March quarter (Q4FY25) revenue slightly missed expectations, its 2% to 5% revenue growth forecast for FY26 exceeded analyst estimates and outpaced growth projections from peers.
While companies like Infosys and Wipro have warned of a sluggish year ahead—citing greater exposure to tariff-related challenges in retail and manufacturing—HCL Tech struck a more optimistic tone with its outlook.
Another factor that boosted the domestic technology stocks was a strong rebound in the US tech stocks in the previous session, after Donald Trump stated he had no plans to fire Fed Chair Jerome Powell, despite frustrations over interest rate policy.
The comment built on a statement by Trump last week that said he believed he could fire Powell, a move that shook financial markets and frightened investors that interest rates might be subject to politics instead of economic fundamentals.
Trump also softened his stance on China, saying he planned to be “very nice” in future negotiations and hinted that tariffs could fall if a deal was reached, easing fears of an escalating trade war. He added that final tariffs on China would not be “anywhere near” the previously floated 145% mark.
Meanwhile, US Treasury Secretary Scott Bessent, in a speech on Tuesday, called the current tariff conflict with China “unsustainable” and expressed expectations for a “de-escalation” in tensions between the world’s two largest economies.
As trade talks between the US and China are expected to ease in the near future, Indian IT stocks—previously battered by Dalal Street investors due to concerns over a US slowdown—are beginning to regain momentum amid these positive developments.
The dollar index also rose above 99 on Wednesday, building on a 0.7% gain from the previous session. Despite the recent rebound, the dollar remains down about 9% year-to-date and has lost much of its safe-haven appeal in recent weeks amid persistent trade tensions.
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