Tech Mahindra, Oracle, Mphasis Share Price: Nifty IT Stocks Gain After US-China Tariff Truce Extension

Technology stocks gained on August 12, 2025, after the United States and China extended their tariff truce for another 90 days. US President Donald Trump announced on his Truth Social account earlier today that he had signed an executive order "That will extend the Tariff Suspension on China for another 90 days." All the other terms of the agreement will remain the same, he added.

That means, for now, the US will keep a 30 per cent tariff on Chinese goods, and China will keep a 10 per cent tariff on US goods. Earlier this year, the Trump administration had warned of tariffs as high as 145 per cent on China, and China had retaliated with 125 per cent tariffs on the US. However, the tariffs were reduced after the May trade talks in Geneva.

Tech Mahindra Lead Gainers

The Nifty IT index rose as much as 527.85 points, or 1.52 per cent, in early trade. "NIFTY IT Index traded up today as all tier-I companies traded higher on signs of a US-China trade truce," said Sumit Pokharna, VP-Fundamental Research, Kotak Securities.

Tech Mahindra led the gainers, rising as much as 2.45 per cent to an intraday high of Rs 1,517.40 per share on the NSE. Following it, Mphasis rose up to 2.26 per cent to an intraday high at Rs 2,732.80 per share, Oracle Financial Services Software surged 2.80 per cent to the day's high at 8,639 apiece. However, later in the session, these stocks witnessed some profit-booking and closed with gains of 1-2 per cent.

Persistent Systems, HCL Technologies, LTIMindtree, Coforge, and Wipro also closed the session in the positive territory.

Heavyweights Infosys, TCS, Drag Nifty IT

The Nifty IT index later pared initial gains to close with a minor gain. At close, the the index was at 34,674.30, up 0.38 per cent against previous close.

Index heavyweights, Infosys and Tata Consultancy Services (TCS), which collectively hold 51.27 per cent weight in the Nifty IT, contributed the most in weighing down the index. Infosys, which had surged up to 0.9 per cent during the day to hit a high of Rs 1,441 apiece, closed at Rs 1,424.70, down 0.25 per cent.

Pokharna of Kotak Securities said Infosys was up because it announced a strategic partnership with ABN Amro, one of the largest banks in the Netherlands, to transform the latter's lending process with nCino platform implementation.

TCS too was trading higher in the early session, rising up to 1.82 per cent to the day's high at Rs 3,096.40 per share. Later the IT services giant pared gains to close flat at Rs 3,039.80 apiece, though slightly in the negative territory.

How the US-China Trade Truce Extension Benefits IT Sector

Vaqarjaved Khan, CFA, senior fundamental analyst at Angel One, said the truce extension helps avoid the triple-digit tariffs that had previously dampened US growth, postponed corporate discretionary spending, and pushed inflation higher. Indian IT firms, which derive most of their revenue from the US, could benefit as their biggest market becomes more stable.

However, Khan cautioned investors, saying, "This event cannot lead to a major rally as markets will be focused on the Trump-Putin meeting scheduled ahead this week, tariff discussion between the US and India and the US Federal Reserve's path to future rate cuts." Trump and Russian President Vladimir Putin are set to meet in Alaska on August 15 to discuss how to end the war in Ukraine.