IT Shares Bounce Back for Second Day As Optimism Grows Over US Trade Negotiations and Fed Rate Reduction

Mumbai, Sept. 10, 2025: Indian IT shares rallied for the second consecutive session on Wednesday, helped by optimism over US–India trade talks and growing expectations of a US Federal Reserve rate reduction, lifting sentiment for software services companies with export orientation.

As of 11:34 IST, the NIFTY IT index had increased 2.67% to 36,198.50, after starting the day at 35,428.90 and reaching an intraday high of 36,249.10. Market breadth was largely positive, with all 10 constituents moving higher.

OFSS, Wipro, Persistent Lead Gains

The sector leader was Oracle Financial Services Software (OFSS), which jumped 8.58% to ₹9,134.50, supported by its parent’s positive cloud guidance early in the week. Persistent Systems rose 4.80% to ₹5,377.50, while MphasiS rose 4.28% to ₹2,975.50.

Others in major movement were Coforge at ₹1,767.50, up 4.18%, and LTIMindtree at ₹5,393.00, up 4.00%. Wipro also rose 3.11% to ₹256.89, while HCLTech increased 2.72% to ₹1,465.90.

Among the index leaders, Tech Mahindra jumped 2.07% to ₹1,529.20, TCS gained 1.98% to ₹3,109.90, and Infosys gained 1.77% to ₹1,531.00, building on gains ahead of the September 11 board meeting to approve a share buyback plan.

Optimism from Trade and Fed Cues

Investors pointed to US–India trade talks progress, with official remarks indicating talks will reopen to ease tariff and regulatory tensions, a major Indian IT exporter that depends significantly on the US market.

Furthermore, increased hopes of a near-term Fed rate reduction fueled risk appetite and discretionary technology spending prospects in the world’s largest economy, underpinning demand forecasts for Indian outsourcing companies.

The optimism follows Tuesday’s bounce, which was also supported by Infosys announcing its next board meeting to deliberate on capital allocation via buybacks.

Market Snapshot

While IT stocks led the way, the broader indices also traded strong. At 11:34 IST, the NIFTY 50 was 0.48% higher at 24,988, though the NIFTY IT index was still the undisputed leader with across-the-board advances.

REF: https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY IT

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