IT stocks jump again: OFSS, Wipro lead rally amid US-India trade buzz, Fed rate cut hopes

5 hours ago 1

IT Stocks Rally Today:

Shares of Indian IT companies rallied sharply in early trade on Tuesday, lifting the Nifty IT index by over 2 per cent to 36,075.95, led by gains in Oracle Financial Services, Persistent Systems, and Mphasis.

The sector outperformed for the second straight session, rebounding strongly after a five-day losing streak. The rally comes because of two main triggers; one is positive commentary on India-US trade relations from former US President Donald Trump, and second is rising hopes of a US Fed rate cut ahead of next week’s FOMC meeting.

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Key triggers behind the rally in IT Stocks

Trade sentiment improves

Trump said the US and India are set to resume talks to resolve trade barriers. In a post on Truth Social, he wrote:

“India and the United States are continuing negotiations... I look forward to speaking with Prime Minister Narendra Modi.”

Although tariffs have not directly impacted Indian IT services, improved trade ties are seen as a positive for the export-heavy sector, which earns a significant share of its revenue from the US.

Fed rate cut hopes:

Expectations of a rate cut at the September 16–17 FOMC meeting grew after revised US job data showed the economy created 911,000 fewer jobs through March than earlier reported. Lower rates in the US typically boost discretionary IT spending by client companies.

Infosys buyback buzz:

Infosys added to the momentum after announcing that its board will meet on September 11 to consider a share buyback. If approved, it would be the company’s first since its Rs 9,300-crore buyback in 2022.