Nifty IT climbs on US tech rally, Zensar up 11%
Information technology stocks rallied on Thursday, with the Nifty IT index rising more than 4.7% and Zensar Technologies jumping about 11%, as investors bought into the sector after recent declines driven by a US tech rally and value buying.
The rebound, which lifted the Nifty 50 by around 0.7%, marked a second straight session of gains for several IT names and snapped a four-day losing streak for the sector index.
Market Overview
| Index | 3 Jul 2026 Close (approx.) | Move & % Change | Comments |
|---|---|---|---|
| Nifty IT | approx. sector close not stated | +approx. 4.7% | Snapped four-day losing streak, led NSE sectoral gains. |
| Nifty 50 | 24,321.50 | +145.8 pts (+0.7%) | Broader market up, IT outperformed benchmark. |
Note: figures are approximate; final exchange data not available at time of publication.
- Nifty IT emerged as the top performing sector on the NSE.
- Sector rebound followed several sessions of losses and recent correction.
- Broader indices were positive but lagged sectoral IT gains.
Key IT Movers
| Top Gainers | Sector | Notable Factor |
|---|---|---|
| Zensar Technologies | IT & ITeS | Extended recovery, share price up about 11% in second session. |
| Infosys | Large-cap IT services | Gained 5.6%, participated strongly in sector rebound. |
| Tech Mahindra | Large-cap IT services | Rose 4.5%, aided Nifty IT outperformance. |
| Tata Consultancy Services (TCS) | Large-cap IT services | Added 4.5%, supported index recovery. |
| Tata Technologies | Mid-cap IT & engineering | Jumped 6.5%, strong mid-cap buying interest. |
| Persistent Systems | Mid-cap IT services | Gained between 5-6% on renewed buying. |
| MphasiS | Mid-cap IT services | Advanced between 5-6%, tracking sector strength. |
| Coforge | Mid-cap IT services | Rose between 5-6%, part of mid-cap rally. |
- Large-cap IT names led initial recovery in the sector.
- Mid-cap IT stocks saw strong follow-through buying interest.
- Zensar shares rose in tandem with broader IT sector strength.
Sectoral Action and Drivers
| Sector/Index | Direction (approx.) | Key Drivers |
|---|---|---|
| Nifty IT | up 4.7% | US tech rally, attractive valuations, pre-results positioning. |
| Mid-cap IT basket | up 5-6% | Strong buying after recent correction, value interest. |
- US technology stock rally improved sentiment towards Indian IT exporters.
- Recent correction made IT valuations look attractive to some investors.
- Anticipation of upcoming quarterly results supported sector positioning.
- Investors rotated into IT after several days of underperformance.
- “The rise is partly due to the US tech rally and also because we are heading into quarterly results.”
– Sumit Pokharna, Senior Vice President, Fundamental Research, Kotak Securities.
- “Pessimism has made investors ignore that IT stocks are trading at rare low valuations… even small positive news could trigger a rebound.”
– Manish Bhandari, CEO and Portfolio Manager, Vallum Capital.
Technical Outlook for Nifty IT
- Overall trend for Nifty IT remains weak, per technical indicators.
- Index trades below key moving averages on daily and weekly charts.
- Momentum indicators are not supportive, showing weak relative performance.
- “The index is also near an important long-term support zone, which has triggered rebounds in the past. While short-term pullbacks or rallies cannot be ruled out, a strong and sustained uptrend is unlikely unless the index moves above the 27,600-27,700 zone.”
– Sudeep Shah, Head of Technical and Derivatives Research, SBI Securities.
- Technical view suggests caution despite sharp single-session gains.
- Short-term rallies possible while long-term trend stays subdued below resistance.
Broader Context for Indian Equities
- India has underperformed regional and global markets in recent years.
- Earnings growth in India fell to low single digits in that period.
- Other regions saw an AI-led recovery, widening performance gap.
- “Growth in India is coming back, and there is some catch-up ahead. Investors should remain invested and gradually increase exposure to mid- and small-caps.”
– Dinshaw Irani, MD and CEO, Helios India.
- Improving domestic growth outlook may support broader equity allocations.
- Mid- and small-cap segments highlighted for gradual exposure increases.
FAQs
Q: Why did Nifty IT outperform the Nifty 50 in this session?
- Nifty IT gained about 4.7% versus Nifty 50’s 0.7%, driven by US tech strength, value buying and pre-results positioning.
Q: How did Zensar Technologies trade relative to other IT stocks?
- Zensar rose about 11%, extending a two-day recovery, outpacing gains in large-cap and mid-cap IT peers.
Q: What is the current technical stance on the Nifty IT index?
- Analysts flag a weak trend, with Nifty IT below key moving averages and needing a move above 27,600-27,700 for a sustained uptrend.
Frequently Asked Questions
Why did Nifty IT outperform the Nifty 50 in this session?
Nifty IT rose about 4.7% compared with Nifty 50’s 0.7%, supported by a US tech rally, attractive post-correction valuations and investor positioning ahead of quarterly results.
How did Zensar Technologies perform during the IT sector rebound?
Zensar Technologies gained around 11% and extended its recovery for a second straight session, moving in line with the broader rally in IT stocks.
What are analysts saying about the technical outlook for Nifty IT?
Analysts note the Nifty IT index remains below key daily and weekly moving averages, with momentum indicators weak, and suggest a sustained uptrend is unlikely unless it moves above the 27,600-27,700 resistance zone.
Disclaimer
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