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Shares of information technology companies saw robust buying interest on Tuesday, with the Nifty IT index climbing 6 per cent to 40,301.4 in intra-day trade on the National Stock Exchange. The surge followed news of the India–US trade deal, which eased trade tensions and gave a fresh boost to investor confidence in India’s export-focused sectors.

Among individual stocks, Tech Mahindra reached a record high of Rs 1,854, rallying 8 per cent. HCL Technologies also touched a 52-week high at Rs 1,780.10, gaining 6 per cent. Other major IT companies, including Mphasis, Persistent Systems, Wipro, Infosys and Tata Consultancy Services (TCS), were up between 6 and 8 per cent, reflecting broad-based buying across the sector.

By 13:49 AM, the Nifty IT index was up 1.66 per cent, while the Nifty 50 rose 2.79 per cent in the same period. Over the past six months, the IT index has outpaced the broader market, rising 12 per cent compared with a 4.3 per cent gain in the Nifty 50, showing the sector’s resilience and sustained investor interest.

Also read: India-US Trade Deal: Big headline, unfinished business? Key takeaways and unanswered questions

Analysts said the India–US trade deal is the key trigger for Tuesday’s gains. The agreement reduces tariffs on Indian goods to 18 per cent. While IT services and software exports are not directly affected by tariffs, the US accounts for over 60 per cent of revenues in the sector, and the improved trade relationship eases geopolitical uncertainty. “Better US-India relations create a positive backdrop for IT companies,” said a market strategist.

Also read: Textile stocks rally: Gokaldas Exports, KPR Mill, Trident soar up to 20% on India–US deal, Budget push

Finance Minister Nirmala Sitharaman in the Union Budget 2026 made some important announcement to provide incremental support to IT companies. Key measures include:

1)The Buyback taxation is one of the major announcement in the budget 2026. The changes pertain to the buyback proceeds that will now be treated as capital gains, which could encourage more buyback activity.

2)Safe harbor revisions made in the budget announcement are meant to Lower margins and expanding thresholds simplifying compliance for IT firms.

3)Data center tax holiday will allow foreign companies using Indian data centers for global cloud services can claim a tax holiday until FY2047, provided services to Indian users go through an Indian reseller. Analysts say this could make India’s data center ecosystem more attractive for global cloud players.

The combination of improved trade relations and supportive policy is helping IT stocks outperform. Companies such as Tech Mahindra and HCL Technologies led the gains on Tuesday, suggesting investors are confident about export growth amid easing global uncertainty.

Sector observers said the Nifty IT index’s performance reflects renewed optimism in India’s IT export ecosystem. With trade tensions easing and domestic policies providing incremental support, the sector is likely to remain in focus in the near term.

Tuesday’s rally shows that the IT sector continues to attract investor attention, driven by a combination of geopolitical developments, policy support, and strong earnings potential.