IT Stocks Today: If you were wondering why IT stocks suddenly became the stars of Dalal Street on Tuesday while several other sectors remained volatile, the answer lies in the currency market. The rupee’s fresh slide to record lows has once again shifted investor attention toward companies that earn a major chunk of their revenue in US dollars.
And that’s precisely the reason stocks like Infosys, Tata Consultancy Services, Coforge, Persistent Systems and HCL Technologies saw robust buying interest across the day.
The logic for market participants is pretty simple: As the rupee weakens, Indian IT companies get more rupees for every dollar they earn overseas. This enhances margins, improves the earnings outlook and often restores investor confidence in the sector.
Why does rupee depreciation help IT stocks?
The Indian rupee depreciates to a new low of 96.40 against the US dollar on Tuesday, May 19. The IT stocks benefited from the fall of the rupee. Here’s the simple market equation that traders are watching closely right now.
Most large Indian IT firms generate a substantial share of their revenue from North America and global markets. They largely bill their contracts in dollars. So if the rupee depreciates sharply against the US dollar, the value of those dollar earnings increases when converted back into Indian currency.
Hence, every major dip in the rupee usually brings in fresh buying in export-orientated sectors like IT and pharma.
Tuesday’s market action reflected exactly that sentiment.
NIFTY IT jumps over 3% as tech buying intensifies
The rally was visible across the entire technology space.
The NIFTY IT index surged 949.90 points, or 3.35%, to trade at 29,339.70 around 2:36 PM IST. The index opened at 28,679.85 and climbed to an intraday high of 29,609.60, showing sustained momentum throughout the session.
The broader BSE-focused IT index also mirrored the strength. The index jumped 1,150.85 points, or 3.38%, to 35,209.77 after touching an intraday high of 35,534.62.
For traders, this was not just stock-specific buying. This looked like a full-fledged sectoral rotation into IT counters.
Coforge takes charge in the rally with jump of over 5%
Coforge was among the top gainers in the stocks.
The stock jumped more than 5% to ₹1,416.30 after hitting an intraday high of ₹1,447. Investors seemed to have aggressively bought the stock on optimism over improving export earnings and strong momentum in the technology sector.
The stock held well during the afternoon session, which indicates a higher confidence in midcap IT names too.
Also Read: Coforge Share Price Extends Rally For 3rd Day On AI Optimism, Jumps 5% As IT Sector Rebounds
Persistent Systems, HCL Tech and Tech Mahindra continue to rise
The buying extended beyond one or two counters.
Persistent Systems was up over 3% at Rs 5,097, and HCL Technologies was up more than 3% at Rs 1,183.
Meanwhile, Tech Mahindra jumped nearly 3% as traders continued rotating into frontline IT stocks.
The broader message from the market was clear — investors were willing to pay a premium again for export-heavy businesses benefiting from currency weakness.
TCS, Wipro and Oracle Financial also trade firmly higher
Even heavyweight names participated actively in the rally.
Tata Consultancy Services gained over 2% to trade near ₹2,336, while Wipro added close to 2%.
Oracle Financial Services Software also witnessed strong buying interest, rising nearly 3% during the afternoon trade.
Interestingly, the rally was broad-based across large-cap, mid-cap and specialised technology players — something traders usually watch carefully before calling it a strong sectoral move.
Should investors buy IT stocks now?
That’s the big question many retail investors are asking after Tuesday’s sharp rally.
The answer may depend on two factors.
First, whether the rupee continues to remain weak against the dollar. If currency pressure persists, IT companies could continue to enjoy earnings tailwinds in coming quarters.
Second, investors will closely monitor global demand trends, especially from the US economy, where most Indian IT firms generate significant business.
For now, traders appear to believe that currency benefits and improving global tech sentiment are outweighing concerns around slower discretionary spending.
But after such a sharp one-day rally, analysts may also expect some profit booking at higher levels in the near term.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
Priyanka Roshan is a business writer and chief sub-editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.
With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Moneycontrol, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.
