{"id":14594,"date":"2026-06-01T12:43:18","date_gmt":"2026-06-01T12:43:18","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?p=14594"},"modified":"2026-06-01T12:43:20","modified_gmt":"2026-06-01T12:43:20","slug":"nifty-it-rally-infosys-tcs","status":"publish","type":"post","link":"https:\/\/lemonn.co.in\/blog\/market-updates\/nifty-it-rally-infosys-tcs\/","title":{"rendered":"Nifty IT extends rebound as Infosys, TCS, Tech Mahindra gain"},"content":{"rendered":"
\"Nifty<\/figure>\n\n\n

Indian IT stocks advanced for a second straight session on Monday, lifting the Nifty IT index<\/strong> by around 3% to 4% intraday<\/strong> as investors revisited valuation concerns and global AI risks ahead of the US Federal Reserve\u2019s next policy meeting. The index climbed to an intraday high of about 30,177<\/strong>, with buying concentrated in large-cap names such as Infosys<\/strong>, Tata Consultancy Services (TCS)<\/strong>, Tech Mahindra<\/strong> and HCLTech<\/strong>, and mid-cap Persistent Systems<\/strong> leading gains with a near 5%<\/strong> jump.<\/p>\n\n\n\n

Market overview<\/h2>\n\n\n\n
Index<\/strong><\/th>1 Jun 2026 Intraday High \/ Level<\/strong><\/th>Move & % Change<\/strong><\/th>Comments<\/strong><\/th><\/tr><\/thead>
Nifty IT<\/strong><\/td>approx. 30,177.5<\/strong><\/td>approx. +900 pts (+3% to +4%)<\/td>Second straight session of gains after recent AI-driven selloff.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Note: figures are approximate; final exchange data not available at time of publication.<\/p>\n\n\n\n

    \n
  • Nifty IT<\/strong> touched around 29,905<\/strong> in morning trade, then extended gains towards 30,177.5<\/strong> intraday.<\/li>\n\n\n\n
  • Index has risen nearly 4%<\/strong> over two sessions after a sharp decline earlier this year.<\/li>\n\n\n\n
  • IT was the top sectoral gainer in Monday\u2019s trade, according to exchange data.<\/li>\n<\/ul>\n\n\n\n

    Key movers<\/h2>\n\n\n\n
    Top Gainers<\/strong><\/th>Sector<\/strong><\/th>Notable Factor<\/strong><\/th><\/tr><\/thead>
    Persistent Systems<\/strong><\/td>IT services<\/td>Jumped nearly 5%<\/strong>, emerged as top gainer on Nifty IT index.<\/td><\/tr>
    Infosys<\/strong><\/td>IT services<\/td>Shares rose nearly 4%<\/strong>, tracking sector-wide rebound.<\/td><\/tr>
    Mphasis<\/strong><\/td>IT services<\/td>Gained over 3%<\/strong>, supported by broader IT buying.<\/td><\/tr>
    Tech Mahindra<\/strong><\/td>IT services<\/td>Advanced more than 3%<\/strong>, aided by improved sentiment.<\/td><\/tr>
    LTI Mindtree<\/strong><\/td>IT services<\/td>Climbed over 3%<\/strong> alongside other mid-cap IT names.<\/td><\/tr>
    Coforge<\/strong><\/td>IT services<\/td>Added more than 3%<\/strong> in intraday trade.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
    Top Losers<\/strong><\/th>Sector<\/strong><\/th>Notable Factor<\/strong><\/th><\/tr><\/thead>
    None<\/td><\/td>No major IT stock declined materially within the referenced data.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
      \n
    • TCS<\/strong> and Oracle Financial Services Software (OFSS)<\/strong> gained around 2%<\/strong> each.<\/li>\n\n\n\n
    • HCL Technologies<\/strong> and Wipro<\/strong> advanced around 1%<\/strong> each.<\/li>\n\n\n\n
    • Large-cap names TCS<\/strong>, Infosys<\/strong>, HCLTech<\/strong> and Wipro<\/strong> collectively drove most of the index move.<\/li>\n<\/ul>\n\n\n\n

      What is driving the IT rally<\/h2>\n\n\n\n
        \n
      • Earlier this year, IT stocks fell after launch of plug-ins for Anthropic\u2019s Claude Cowork AI agent.<\/li>\n\n\n\n
      • The tools can automate tasks across legal, sales, marketing and data analysis, pressuring software and IT valuations.<\/li>\n\n\n\n
      • The selloff was described as a potential \u201cSaaSpocalypse\u201d for software-as-a-service names.<\/li>\n\n\n\n
      • Recent buying reflects reassessment that AI tools may not fully displace large IT services providers.<\/li>\n\n\n\n
      • A brokerage note cited no \u201cexistential threat\u201d from generative AI for Indian IT services.<\/li>\n\n\n\n
      • The note argued enterprises still need system integrators to customise plug-and-play AI tools.<\/li>\n\n\n\n
      • It added integrators are required to manage complex brownfield tech stacks and assume failure risk.<\/li>\n\n\n\n
      • Investors are also responding to relatively cheaper valuations after the AI-driven correction.<\/li>\n\n\n\n
      • Optimism around potential US rate cuts is supporting risk assets, including export-focused IT.<\/li>\n\n\n\n
      • The upcoming Federal Reserve meeting, the first under Chair Kevin Warsh, is in focus.<\/li>\n\n\n\n
      • Warsh was chosen with expectations of support for lower borrowing costs to aid growth.<\/li>\n\n\n\n
      • However, rising US inflation has raised doubts over the pace and extent of rate cuts.<\/li>\n<\/ul>\n\n\n\n

        Technical outlook on Nifty IT<\/h2>\n\n\n\n
          \n
        • The Nifty IT<\/strong> index recently took support near a crucial technical zone, indicating short-term recovery potential.<\/li>\n\n\n\n
        • On hourly charts, the index has formed an inverse head and shoulders pattern.<\/li>\n\n\n\n
        • A decisive breakout above the pattern neckline has triggered further upside momentum.<\/li>\n\n\n\n
        • The move is seen as positive for heavyweights Infosys<\/strong>, TCS<\/strong> and HCL Technologies<\/strong>.<\/li>\n\n\n\n
        • Sustaining above 29,650<\/strong> could open room for a further move towards the 31,280<\/strong> zone.<\/li>\n\n\n\n
        • The current advance is viewed as a retracement within the broader trend, not a confirmed reversal.<\/li>\n\n\n\n
        • Traders are advised to remain cautious despite the ongoing rebound.<\/li>\n\n\n\n
        • Aggressive traders may consider short-term opportunities if the index holds above key supports.<\/li>\n\n\n\n
        • A break below 28,800<\/strong> could invite renewed selling across IT stocks and weaken the recovery.<\/li>\n\n\n\n
        • “Aggressive or high-risk traders may consider short-term trading opportunities in select IT counters, provided the index maintains strength above key support levels” \u2014 Kunal Kamble, Senior Technical Research Analyst, Bonanza.<\/li>\n<\/ul>\n\n\n\n

          Sectoral context and AI backdrop<\/h2>\n\n\n\n
          Sector\/Index<\/strong><\/th>Direction (approx.)<\/strong><\/th>Key Drivers<\/strong><\/th><\/tr><\/thead>
          Nifty IT<\/strong><\/td>up 3% to 4%<\/td>Repricing of AI risk, valuation comfort, positive technical setup.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
            \n
          • The rally comes amid a broader global AI enthusiasm that has lifted technology benchmarks worldwide.<\/li>\n\n\n\n
          • Indian IT stocks had earlier underperformed on fears of AI-led disruption to outsourcing models.<\/li>\n\n\n\n
          • The latest move suggests investors are differentiating between software product risk and services demand.<\/li>\n\n\n\n
          • Enterprises are expected to keep spending on integration, maintenance and customisation of AI tools.<\/li>\n<\/ul>\n\n\n\n

            FAQs<\/h2>\n\n\n
            \n
            \n
            \n

            Why did Nifty IT rally despite AI disruption concerns?<\/strong><\/h3>\n
            \n\n

            Investors reassessed AI as a tool requiring integrators, not a full replacement, and bought IT stocks at lower valuations.<\/p>\n\n<\/div>\n<\/div>\n

            \n

            Which IT stocks moved the most in this session?<\/strong><\/h3>\n
            \n\n

            Persistent Systems<\/strong> gained nearly 5%, Infosys<\/strong> about 4%, while Mphasis<\/strong>, Tech Mahindra<\/strong>, LTI Mindtree<\/strong> and Coforge<\/strong> rose over 3%.<\/p>\n\n<\/div>\n<\/div>\n

            \n

            What are the key technical levels for Nifty IT now?<\/strong><\/h3>\n
            \n\n

            Holding above 29,650<\/strong> supports a potential move towards 31,280<\/strong>, while a fall below 28,800<\/strong> may trigger renewed selling.<\/p>\n\n<\/div>\n<\/div>\n

            \n

            Why did Nifty IT rally despite AI disruption concerns?<\/strong><\/h3>\n
            \n\n

            Investors reassessed AI as a tool that still needs large system integrators for customisation and maintenance, and bought Indian IT stocks at cheaper valuations after the earlier AI-driven selloff.<\/p>\n\n<\/div>\n<\/div>\n

            \n

            Which IT stocks moved the most in this session?<\/strong><\/h3>\n
            \n\n

            Persistent Systems gained nearly 5%, Infosys about 4%, while Mphasis, Tech Mahindra, LTI Mindtree and Coforge each rose over 3%, with TCS and OFSS up around 2%.<\/p>\n\n<\/div>\n<\/div>\n

            \n

            What are the key technical levels for Nifty IT now?<\/strong><\/h3>\n
            \n\n

            Analysts highlight support near 28,800 and 29,650. Sustaining above 29,650 could allow a move towards 31,280, while a breach below 28,800 may invite renewed selling pressure.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

            Indian IT stocks advanced for a second straight session on Monday, lifting the Nifty IT index by around 3% to 4% intraday as investors revisited valuation concerns and global AI risks ahead of the US Federal Reserve\u2019s next policy meeting. The index climbed to an intraday high of about 30,177, with buying concentrated in large-cap […]<\/p>\n","protected":false},"author":15,"featured_media":14593,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_ayudawp_aiss_exclude":false,"_ayudawp_aiss_summary":"Indian IT stocks advanced for a second straight session on Monday, lifting the Nifty IT index by around 3% to 4% intraday as investors revisited valuation concerns and global AI risks ahead of the US Federal Reserve\u2019s next policy meeting. The index climbed to an intraday high of about 30,177, with buying concentrated in large-cap names such as Infosys, Tata Consultancy Services (TCS), Tech Mahindra and HCLTech, and mid-cap Persistent Systems leading gains with a near 5% jump. Persistent Systems gained nearly 5%, Infosys about 4%, while Mphasis, Tech Mahindra, LTI Mindtree and Coforge each rose over 3%, with TCS and OFSS up around 2%.","_ayudawp_aiss_summary_provider":"extractive","_ayudawp_aiss_summary_hash":"4910e8c430796cd1b9ac960722aa33f81fc77dd0","footnotes":""},"categories":[512],"tags":[],"class_list":["post-14594","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-updates"],"blocksy_meta":[],"uagb_featured_image_src":{"full":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nifty-it-extends-rebound-as-infosys-tcs-tech-mahindra-gain-banner-2.png",1200,640,false],"thumbnail":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nifty-it-extends-rebound-as-infosys-tcs-tech-mahindra-gain-banner-2-150x150.png",150,150,true],"medium":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nifty-it-extends-rebound-as-infosys-tcs-tech-mahindra-gain-banner-2-300x160.png",300,160,true],"medium_large":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nifty-it-extends-rebound-as-infosys-tcs-tech-mahindra-gain-banner-2-768x410.png",768,410,true],"large":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nifty-it-extends-rebound-as-infosys-tcs-tech-mahindra-gain-banner-2-1024x546.png",1024,546,true],"1536x1536":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nifty-it-extends-rebound-as-infosys-tcs-tech-mahindra-gain-banner-2.png",1200,640,false],"2048x2048":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nifty-it-extends-rebound-as-infosys-tcs-tech-mahindra-gain-banner-2.png",1200,640,false],"web-stories-poster-portrait":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nifty-it-extends-rebound-as-infosys-tcs-tech-mahindra-gain-banner-2-640x640.png",640,640,true],"web-stories-publisher-logo":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nifty-it-extends-rebound-as-infosys-tcs-tech-mahindra-gain-banner-2-96x96.png",96,96,true],"web-stories-thumbnail":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nifty-it-extends-rebound-as-infosys-tcs-tech-mahindra-gain-banner-2-150x80.png",150,80,true]},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/yudh\/"},"uagb_comment_info":0,"uagb_excerpt":"Indian IT stocks advanced for a second straight session on Monday, lifting the Nifty IT index by around 3% to 4% intraday as investors revisited valuation concerns and global AI risks ahead of the US Federal Reserve\u2019s next policy meeting. The index climbed to an intraday high of about 30,177, with buying concentrated in large-cap…","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/14594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/comments?post=14594"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/14594\/revisions"}],"predecessor-version":[{"id":14599,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/14594\/revisions\/14599"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media\/14593"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=14594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/categories?post=14594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/tags?post=14594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}