Infosys and Tech Mahindra Propel IT Stocks Higher as Fed’s Dovish Stand Revives Rate Cut Hopes

Mumbai, 25 June 2025: Indian IT shares rallied sharply on 25 June 2025 after US Federal Reserve Chair Jerome Powell signalled a potential shift in policy during his Congressional testimony. His dovish tone raised expectations of interest rate cuts in the coming months, lifting sentiment across global tech stocks. The Nifty IT index surged 1.74%, with all ten constituents closing in positive territory, reflecting widespread investor confidence.

Nifty IT Rallies to 39,087.20; All Constituents End in Green

The Nifty IT index gained 669.25 points to settle at 39,087.20, up from its previous close of 38,417.95. The index touched an intraday high of 39,109.25 and a low of 38,605.50. This marked a clean sweep for the sector, as all ten stocks posted gains, underlining broad-based bullish sentiment.

The sharp uptick followed Powell’s remarks suggesting that the Fed might begin easing rates earlier than expected. With Indian IT companies earning a significant portion of their revenues from US clients, the potential monetary easing is viewed as a tailwind for the sector.

Top Performers: Mphasis, Infosys, LTIMindtree Lead the Pack

• Mphasis led the rally with a gain of 2.62%, closing at ₹2,753.
• Infosys followed closely, rising 2.34% to ₹1,618.60.
• LTIMindtree advanced 2.18% to ₹5,453.
• Tech Mahindra ended 1.75% higher at ₹1,706.40.
• TCS, Wipro and HCL Tech gained between 1.5% and 1.72%.
• Persistent Systems, Coforge, and Oracle Financial Services Software (OFSS) also ended in the green, completing a sector-wide rally.

Wall Street Momentum Echoes in Domestic Sentiment

The bullish momentum wasn’t limited to Indian markets. In the US, Powell’s comments propelled the Nasdaq Composite to a new record high. He reassured markets that inflation remains contained and acknowledged that “if price pressures stay mild, the path to rate cuts could open up sooner.”

This buoyed global tech sentiment, especially in markets like India where IT firms have substantial dollar-linked revenues.

Sector Outlook: Strong Demand and Favourable FX to Drive Growth

The Nifty IT index is currently trading about 15% below its 52-week high of 46,088.90 but has delivered a healthy 9.32% return over the past year. On 25 June alone, the total traded value for IT stocks crossed ₹2,795 crore, reflecting robust interest from institutional and retail investors alike.

Analysts expect further upside in IT counters as a weaker dollar boosts offshore earnings and the anticipated rate cuts stimulate tech spending by US clients. Additionally, Indian IT giants have recently secured several new deals and project wins, including Infosys’s expanded partnership with a leading US health insurer and Wipro’s data centre contract in the EU, which are likely to support growth.

Takeaway

The latest rally highlights growing market conviction in the IT sector’s resilience and global relevance. As central banks worldwide inch closer to a rate-easing cycle, Indian tech stocks could stand to gain further from improved foreign inflows, better margins, and a supportive macro environment. With fundamentals remaining intact and fresh triggers in play, analysts are maintaining a bullish stance on IT heavyweights through the second half of 2025.

Updated as of 3:04 PM IST, June 25, 2025.

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