Nifty IT Index Rises 3% Amid Global Rebound; Coforge and Persistent Systems Lead

Market Performance

The Nifty IT index gained 3% in early trading on April 8, supported by improved global market sentiment. This upswing followed a positive close for the tech-focused Nasdaq Composite in the United States, which had faced significant selling pressure over the past month. However, as the session progressed, the Nifty IT index gave up a substantial part of its initial gains. By 9:35 AM, it was trading around 33,050, registering a 1.2 per cent increase.

Over the past six months, the Nifty IT index has declined by 20 per cent, including 6 per cent in the last month. The previous trading session also saw a 2.5 per cent fall as global investor sentiment remained subdued.

Sector Movement

Mid-cap IT companies outperformed larger peers in early trade. Coforge, Persistent Systems, and Infosys emerged as leading gainers during the initial rally. However, the gains were short-lived for some players. Mphasis and Coforge declined by 5 per cent later in the session, while Infosys recorded a 3.2 per cent drop.

Company Highlights

Indian IT firms are navigating challenges related to dependence on the U.S. market for services exports. Concerns around potential tariffs and a slowing U.S. economy have contributed to a cautious business environment. These factors are expected to impact new contract wins and may affect overall revenue soon.

Summary

While the Nifty IT index experienced a temporary boost following positive developments in global markets, the overall sector outlook remains uncertain. Continued reliance on exports to the U.S., coupled with macroeconomic headwinds, has resulted in underperformance across many IT stocks. Despite early gains led by companies like Coforge and Persistent Systems, broader challenges persist for the Indian IT sector.