Today, the Indian IT stocks have surged exceptionally, driven by TCS’s strong Q1 earnings and Fed rate cut expectations. Every constituent of the index is in positive momentum.

Coforge is leading with a 6.1% gain, whereas Mphasis and TCS are rallying with 5.9% and 5.1% gains, respectively. Other scripts, like Persistent Systems, LTI, Mindtree, etc., are trading with movements between 3% and 4.5%. Wipro has reached a new 52-week high of Rs 556.90, while Tech Mahindra has also hit a new all-time high of Rs 1,507.20.

The Nifty IT index breached a new 52-week high of 39,144 points, rising by 4.85%. TCS accounted for 31% of the index’s gains. Infosys and Wipro combined contributed another 30% to the rally.

This index is approaching its peak of 39,446 points. While other major sectoral indices have already breached new all-time highs in 2024, the Nifty IT index is still lagging behind. If the current rally persists until the end of the session, the index could potentially reach a new record high.

Today’s strong performance by IT stocks has also boosted the Nifty 50 and Sensex to new all-time highs. The Nifty 50 surpassed 24,500 points, peaking at 24,592 points. The Sensex climbed towards the 81,000 mark, reaching a fresh record high of 80,893 points. Overall, market sentiment is optimistic due to the robust performance across IT and broader indices.

Expectations are high for Fed Reserve rate cuts in September and December following a drop in US annual inflation to 3% in June 2024. Indian IT stocks surged earlier in anticipation of rate cuts in early 2024 but were delayed due to persistent inflation. Optimism for a rate cut has boosted IT stocks with increased buying activity since June, supported by positive sentiment and higher FPI inflows.

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