LTIMindtree was the top gainer on the Nifty IT index, rising around 5%, while Coforge gained nearly 4%. Infosys, Persistent Systems, Oracle Financial Services Software (OFSS), Wipro and Mphasis were also trading 2%-5% higher.
The Nifty IT index jumped 3.27% to 31,266.55 around 11:15 am, making it the top sectoral gainer and significantly outperforming the broader market. All 10 constituents of the index were trading in the green, while IT stocks also featured prominently among the top Nifty 50 gainers.
The rally in Indian IT stocks followed a strong performance by US technology shares in the previous session.
The Nasdaq outperformed other major US indices as technology stocks advanced after Nvidia’s stronger-than-expected revenue forecast boosted confidence in the sustainability of the AI-led growth cycle.
The positive sentiment also spilled over into European markets, where technology stocks gained following Nvidia’s outlook, although broader equity markets ended lower amid weakness in banking and financial stocks.
Meanwhile, global markets are awaiting Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole economic symposium later on Friday for clues on the central bank’s approach to inflation and interest rates.Expectations of a clear policy signal remain tempered by Warsh’s reluctance to provide explicit forward guidance. Some Fed officials reiterated concerns over inflation on Thursday and indicated that further rate hikes could remain on the table.
Markets are currently pricing in around a 35% probability of a Fed rate hike at the September meeting, with the odds rising to about 75% by December. The benchmark US 10-year Treasury yield was last at 4.676%.
