The Nifty IT index climbed 1.2% to around 28,049, emerging as the only sectoral index trading in the green. Meanwhile, the BSE Sensex and Nifty 50 fell over 1% as the rupee hit a fresh record low and bond yields surged to all-time highs, weighing on investor sentiment.

Today’s Top IT Gainers

Oracle Financial Services Software emerged as the top gainer on the IT pack, rising over 3%. Shares of LTIMindtree, Coforge and Tech Mahindra climbed more than 2% each, while Mphasis and Persistent Systems gained nearly 2% each.

Heavyweights Infosys and Wipro shares rose over 1% each, while those of Tata Consultancy Services (TCS) and HCL Technologies made marginal gains, as seen at 11.15 am. The sharp gains pulled up the total value of all companies on the Nifty IT index to Rs 1,752 crore.

The AI Story

The IT stocks had seen a sharp decline recently. OpenAI last Monday announced the launch of OpenAI Deployment Company with an initial investment of $4 billion, designed to help organisations build and deploy AI systems they can rely on every day across their most important work. This retriggered worries around AI-led disruption in India’s IT sector.

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Strong earnings by tech giants pushed the Nasdaq to record high levels last week, but the Nifty IT index fell. “IT firms are making reasonable headway in AI-driven opportunities, although it will not be enough to compensate for deflationary headwinds. Offsetting growth headwinds amid high competitive intensity will be challenging. Margin headwinds are manageable by further flexing cost levers,” said Kotak Equities.
As global AI giants rallied, IT stocks on Dalal Street plunged. The Nifty IT index has plunged around 12% in one month, with the IT heavyweights hitting fresh 52-week lows last week. However, Nasdaq tumbled more than 1.5% on Friday. On Dalal Street meanwhile, IT stocks jumped.

Rupee At Record Low

The renewed investor optimism may also have been driven by the weakening rupee. Rupee dropped to a fresh all-time low of 96.18 against the US dollar on Monday, eclipsing its previous record of 96.1350. The Indian currency is Asia’s worst performer so far in 2026, and has ‌dropped 5.5% since the Iran-US war erupted on February ⁠28.
Notably, today marks the fifth consecutive session when the Indian rupee hit a fresh record low as high oil prices sent bond yields soaring to record high levels, denting risk appetite and spooking investors. “Market participants remain cautious amid fears that elevated crude prices may persist for a longer duration despite government measures to control volatility. Near-term rupee range is expected between 95.55–96.25,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.

As the IT companies mostly derive their revenue in US dollars, the rupee’s depreciation boosts hopes for better earnings and profitability.

Investors this week will focus squarely on Nvidia’s earnings on Wednesday for clues on the durability of the artificial intelligence-driven rally, said Bajaj Broking.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)