The rally lifted the Nifty IT index more than 2% higher in early trade, with heavyweight stocks including Infosys, Wipro and Tata Consultancy Services leading the gains.
Shares of Wipro rose over 2%, after climbing as much as 4% earlier in the session. The rally followed an 18.5% jump in Wipro’s American Depositary Receipts (ADRs) overnight.
Investor sentiment was also supported by the company’s partnership with ServiceNow to implement agentic AI solutions across sectors such as procurement, telecom and cybersecurity.
The broader rally in Indian IT stocks came after upbeat earnings and guidance from global technology companies strengthened confidence in AI-driven growth opportunities.
Shares of Dell Technologies surged nearly 40% after the company reported strong demand for AI infrastructure. Revenue linked to data centre equipment and AI servers jumped 181% year-on-year, while the company projected full-year revenue growth of 47% year-on-year, based on the midpoint of its $165-169 billion guidance range.
Dell also forecast FY27 AI-linked shipments of $60 billion, sharply higher than $25.2 billion earlier, highlighting robust enterprise demand for AI-related infrastructure.
Investor sentiment was further boosted after cloud data company Snowflake surged 36.5%, marking its biggest single-day gain in five years.
The company raised its full-year product revenue growth guidance to 31% from 27%, easing concerns that AI tools could disrupt software-as-a-service (SaaS) platforms instead of benefiting them.
Shares of ServiceNow gained 6.5%, while Palantir Technologies jumped 10%, as investors continued to favour companies seen as key beneficiaries of the AI spending cycle.
Back home, optimism also surrounded Mphasis after its analyst day, where the company said it is transitioning from a traditional services-led model to a platform-plus-outcome-based approach from FY27.
Mphasis also said it will begin reporting new performance metrics from FY28, including annual recurring revenue (ARR), platform attach rate and net retention rate.
The positive global cues triggered broad-based buying across the Indian IT pack. Shares of Infosys rose nearly 4%, emerging as one of the top gainers on the Sensex and the Nifty IT index.
Midcap IT names such as Coforge and Persistent Systems climbed around 3% each.
Meanwhile, shares of HCL Technologies, Mphasis and Tata Consultancy Services gained around 2% each. Tech Mahindra and Oracle Financial Services Software also traded over 1% higher.
The rally pushed the Nifty IT index up more than 2.5% to 29,639 during morning trade.
