Nifty IT Surges Over 2% - Here’s Why Tech Stocks Gained Today

IT heavyweights like Infosys, Tata Consultancy Services (TCS), HCL Technologies (HCL Tech) among other tech stocks gained on August 25, 2025. Nifty IT index, which tracks the performance of the sector, rose up to 2.83 per cent intraday before ending with 2.37 per cent gains.

Leading the gains, Infosys climbed as much as 3.46 per cent to an intraday high of Rs 1,539 per share on the NSE. Following it, TCS surged up to 3.21 per cent to Rs 3,152 per share, HCL Tech climbed up to 2.96 per cent to Rs 1,509.70 apiece.

Other Large-cap IT stocks including Wipro, LTIMindtree, and Tech Mahindra gained in the range 1-2 per cent.

Mid-cap IT stocks like Mphasis, Persistent Systems, Oracle Financial Services Software, and Coforge also gained between 1.50 per cent and 3 per cent.

Why IT Stocks Are Up Today

IT stocks are up today mainly on the account of US Federal Reserve Chair Jerome Powell’s dovish speech at the Jackson Hole Symposium, indicating that a rate cut is likely in September.

“Powell asserted that risks to the job market was rising which increases the likelihood of rate cut,” said Vaqarjaved Khan, CFA, senior fundamental analyst, Angel One.

According to Ajit Mishra, senior vice president, research, Religare Broking, Powell’s rate cut hint is making emerging markets like India and IT companies with US exposure more attractive.

Mishra explained, “Lower US interest rates reduce borrowing costs and encourage higher corporate spending, which often translates into increased IT outsourcing and technology upgrades.”

Since IT firms rely on discretionary spending from the US, any rate cut in the US raises the likelihood of that spending picking up.

“Cheaper financing in the US may spur companies to increase discretionary expenditures, especially in areas like IT services, cloud, and digital transformation. Further, a rate cut could revive corporate budgets in the BFSI sector, a key vertical for Indian IT firms, thereby improving order flows and supporting revenue growth," said Mishra.

IT Sector Outlook

Khan of Angel One cautions investors that the trade uncertainty is still a headwind for Indian markets ahead of the looming deadline for additional 25 per cent tariffs.

Earlier this month, US President Donald Trump’s administration imposed an additional 25 per cent tariff on Indian goods on top of the previously imposed 25 per cent tariffs. The initial 25 per cent tariff came into effect from August 7, 2025, and the additional 25 per cent tariff is set to take effect from August 27.

Meanwhile, the Reserve Bank of India (RBI) Governor Sanjay Malhotra on August 25 sounded positive about the ongoing trade talks between India and the US.

"We are hopeful that negotiations on tariffs will play out and there will be minimal impact," Malhotra said at an event.

His remarks come at a time when the sixth round of India-US Bilateral Trade Agreement (BTA) talks, which was to be held on August 25, has been postponed.

Malhotra also assured that India’s foreign exchange reserves is strong enough to cover 11 months of imports and act as a safeguard against global uncertainties.