Nifty IT Index Jumps 2.66% as Salesforce, Snowflake and Workday Earnings Revive Global Software Sector Optimism

The Nifty IT index delivered its best single-day performance in recent weeks on June 2, 2026, surging 2.66% to 29,854.25 even as the broader Nifty 50 fell 0.70% and Sensex dropped 508 points. The Nifty IT rally was sparked by a powerful batch of US software earnings reported on May 27-28, which collectively confirmed that corporate technology spending on AI, cloud infrastructure, and enterprise software platforms remains robust despite global macro headwinds. With all 10 Nifty IT constituents advancing, the session marked a clear institutional conviction buy in Indian IT stocks that had been weighed down by a 22% year-to-date decline before this recovery began.

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Nifty IT vs Broader Market: June 2, 2026

Index	Level	Change	% Change
Nifty IT	29,854.25	+774.10	+2.66%
Nifty 50	23,382.60	-165.15	-0.70%
BSE Sensex	74,267.34	-508.40	-0.68%
Nifty Bank	53,643.10	-596.10	-1.10%
Nifty Auto	25,891.90	-446.55	-1.70%

Nifty IT Stocks Performance on June 2, 2026

Stock	NSE Symbol	June 2 Gain	Key Driver
Persistent Systems	PERSISTENT	+5.18%	AI services momentum; strong deal pipeline
Infosys	INFY	+4.29%	Salesforce/Snowflake AI demand read-through; ADR +2.5%
Coforge	COFORGE	+4.18%	Mid-tier IT value buying; global enterprise demand
TCS	TCS	+4.00%	Mistral AI partnership; Salesforce spending outlook
Tech Mahindra	TECHM	+3.43%	Enterprise tech spending recovery; AI capabilities
LTIMindtree	LTIM	+3.30%	Workday demand signal; cloud services growth
HCL Technologies	HCLTECH	+2.00%	Enterprise software services; US tech recovery
Wipro	WIPRO	+1.50%	ServiceNow agentic AI partnership; ADR +18.54%
Mphasis	MPHASIS	+1-3%	DXC/HPS financial services deal pipeline
L&T Technology Services	LTTS	+1-3%	Engineering R&D services; AI product engineering

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US Software Earnings That Drove the Nifty IT Rally

Company	Report Date	Revenue	Growth YoY	EPS Beat	Key Signal
Salesforce (CRM)	May 27, 2026	$11.13 billion	+13%	$3.88 vs $3.12 est (+24%)	Agentforce AI: 23,000+ customers; ARR $800M
Snowflake (SNOW)	May 27, 2026	$1.39 billion	+33%	$0.39 vs $0.14 est (+178%)	Product revenue +34%; NRR 126%; RPO +38%
Workday (WDAY)	May 21, 2026	$2.542 billion	+13.5%	$2.66 vs $2.23 est (+19%)	12M backlog +15.5% YoY; $27.3B total backlog
Nasdaq Composite	May 28, 2026	26,934.84	Record High	+0.91% session	Tech stocks leading; S&P 500 also at all-time high

The US software earnings season of May 2026 delivered three major positive signals that collectively drove the Nifty IT index higher. Salesforce, the world’s largest enterprise software company by revenue, reported Q1 FY27 results on May 27 that beat on both revenue and EPS. Revenue grew 13% year-on-year to $11.13 billion while adjusted EPS of $3.88 surpassed the $3.12 consensus estimate by 24%, representing a 50% year-on-year earnings growth rate. Snowflake, the AI data cloud platform, delivered an even more dramatic beat: product revenue grew 34% year-on-year to $1.33 billion, EPS of $0.39 beat the $0.14 estimate by 178%, and the company raised its full-year product revenue guidance to $5.84 billion. Snowflake’s stock surged approximately 37% in after-hours trading on May 27, its largest single-day gain in recent memory.

Why US Software Earnings Matter for the Nifty IT Index

The direct connection between US software company earnings and the Nifty IT index runs through the enterprise technology services supply chain. Indian IT companies in the Nifty IT index, including TCS, Infosys, Wipro, HCL Tech, and Tech Mahindra, derive the majority of their revenues from implementing, customising, and managing enterprise software platforms for US corporate clients. When Salesforce’s Agentforce AI platform crosses 23,000 customers and Snowflake’s net revenue retention reaches 126%, these metrics signal that US enterprises are actively investing in AI and cloud platforms, which in turn drives demand for the professional services, system integration, and managed services work that Indian IT companies provide.

Hariprasad K, SEBI-registered research analyst and founder of LIvelong Wealth, said that positive commentary from global tech players including Snowflake’s robust outlook and cloud expansion plans revived confidence that corporate technology demand remains resilient despite global macro uncertainty. He noted that improving sentiment around global tech spending has strengthened expectations of better deal flow and stronger revenue visibility for frontline Indian IT majors in the Nifty IT index. The Nasdaq Composite hitting a record high of 26,934.84 (+0.91% on the session) confirmed the broad-based recovery in US technology sentiment.

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Company-Specific Catalysts Within the Nifty IT Index

Beyond the US macro earnings trigger, two company-specific developments strengthened the Nifty IT index’s upward move. TCS announced a partnership with French artificial intelligence firm Mistral to provide frontier-grade AI capabilities across enterprise functions. This partnership signals TCS’s ability to partner with top-tier global AI model providers and offer differentiated AI service delivery to its enterprise clients, enhancing the company’s competitive positioning in the rapidly growing AI services market.

Wipro announced an expansion of its existing partnership with ServiceNow, focused on deploying agentic AI workflows across enterprise functions including IT operations, human resources, procurement, and cybersecurity. The market response was dramatic: Wipro’s US-listed ADRs surged 18.54% to $2.43 on the NYSE in the previous session, with Infosys ADRs rising 2.5% to $12.70 in sympathy. Kranthi Bathini, equity strategist at WealthMills Securities, said the rebound in the Nifty IT index was also driven by value buying after the sharp correction in the sector, noting that valuations had come down to decadal lows following a 22% year-to-date decline.

The Rupee Tailwind for the Nifty IT Index

A structural but often underappreciated driver of Nifty IT outperformance in the current market environment is the weak Indian rupee. The USD/INR rate has been elevated at approximately Rs 84-95 through 2026, driven by elevated crude oil prices from the US-Iran conflict and persistent FII selling. While this rupee weakness hurts most sectors in the Indian market by raising import costs and inflation, it directly benefits Nifty IT companies. Indian IT companies like Infosys, TCS, and Wipro earn revenues predominantly in US dollars but incur a significant portion of their costs in Indian rupees. A weaker rupee means each dollar of revenue earned translates into more rupees, boosting reported earnings margins without any operational improvement. This structural tailwind makes the Nifty IT index a natural hedge for investors in a portfolio otherwise exposed to the crude oil and geopolitical macro risk that is weighing on broader Indian equities.

Analyst Targets for Nifty IT Stocks

Stock	Analyst	Rating	Target Price
TCS	Univest	Buy	Rs 3,650
Infosys	Univest	Buy	Rs 1,650
Wipro	Univest	Buy	Rs 255
Tech Mahindra	Univest	Buy	Rs 1,750
LTIMindtree	Univest	Buy	Rs 6,200
Coforge	Univest	Buy	Rs 2,200
Persistent Systems	Univest	Buy	Rs 6,100
Mphasis	Univest	Buy	Rs 3,200

Technical Outlook for the Nifty IT Index

At 29,854.25, the Nifty IT index has recovered significantly from its April 2026 lows but remains approximately 22% below its year-start levels. Technical analysts tracking the Nifty IT index note that sustaining above the 29,650 mark is key to opening the door for a further recovery toward the 31,280 zone in the near term. This level represents the next meaningful resistance where selling pressure could emerge. On the downside, a breach below 28,800 could invite selling pressure across Nifty IT stocks and weaken the ongoing recovery structure. The current price action in the Nifty IT index is being characterised as a retracement within the broader downtrend rather than a complete trend reversal, meaning investors should remain selective and monitor whether the improved US software spending sentiment translates into actual deal wins in the upcoming Q1 FY27 earnings season for Indian IT companies.

Conclusion

The Nifty IT index’s 2.66% surge to 29,854.25 on June 2, 2026 demonstrates the sector’s unique ability to rally independently of the broader Indian market when US technology catalysts align. The combination of Salesforce’s 13% revenue growth and 50% EPS beat, Snowflake’s 34% product revenue acceleration and 37% stock surge, Workday’s steady 13.5% growth, TCS-Mistral AI partnership, and Wipro-ServiceNow agentic AI deal have collectively revived the investment thesis for Indian IT stocks after a painful 22% year-to-date correction. With all 10 Nifty IT constituents advancing and rupee weakness providing a structural earnings tailwind, the Nifty IT index is positioned for a meaningful recovery if the improving US technology spending sentiment sustains through the coming weeks and quarters. This does not constitute investment advice.

Investments in securities are subject to market risk. This content is for educational purposes only and does not constitute investment advice.

Frequently Asked Questions on Nifty IT Index Rally

Why did the Nifty IT index jump over 2.5% today on June 2, 2026?

Ans. The The IT index index surged 2.66% to 29,854.25 on June 2, 2026, driven by a combination of strong US software company earnings and company-specific developments back home. Salesforce delivered Q1 FY27 revenue of $11.13 billion (+13% year-on-year) with adjusted EPS of $3.88 beating estimates by 50%. Snowflake reported Q1 FY27 product revenue growth of 34% year-on-year with its stock surging 37% after hours. Workday reported 13.5% revenue growth. The Nasdaq Composite hit a record high of 26,934.84. These results confirmed that corporate technology spending, particularly on AI and cloud infrastructure, remains robust despite global macro uncertainty. Positive commentary from these results revived confidence that Indian IT majors like Infosys, TCS, and HCL Tech would see improving deal flow and better revenue visibility.

Which Nifty IT stocks gained the most on June 2, 2026?

Ans. All 10 constituents of the The IT sector index moved higher on June 2, 2026. Persistent Systems led the gains at +5.18%, followed by Infosys (+4.29%), TCS (+4%), Coforge (+4.18%), and Tech Mahindra (+3.43%). HCL Technologies rose 2%, Wipro gained 1.5%, and Mphasis, LTIMindtree, and L&T Technology Services also closed higher in the range of 1-3%. This broad-based participation across all The technology index constituents signals conviction buying rather than selective opportunism, and reflects genuine sector-wide re-rating on the back of improved global technology spending sentiment.

What were the Salesforce Q1 FY27 results that boosted Nifty IT stocks?

Ans. Salesforce reported Q1 fiscal 2027 results on May 27, 2026 that beat estimates significantly. Revenue was $11.13 billion, up 13% year-on-year, beating the consensus estimate of $11.05 billion. Adjusted earnings per share were $3.88, beating the $3.12 estimate by 24% and representing a 50% year-on-year EPS jump. Agentforce AI ARR reached $800 million at Q4 exit, up 169% year-on-year. Salesforce raised its full-year FY27 revenue guidance midpoint to $45.9-46.2 billion. The company’s Agentforce AI platform crossed 23,000 customers from approximately 3,000 just 15 months prior, demonstrating strong enterprise AI adoption momentum.

What were the Snowflake Q1 FY27 results that drove the Nifty IT rally?

Ans. Snowflake’s Q1 fiscal 2027 results announced on May 27, 2026 were a massive positive surprise. Product revenue was $1.33 billion, up 34% year-on-year, with the growth rate accelerating from 30% in the previous quarter. Total revenue grew 33% year-on-year to $1.39 billion. EPS was $0.39, beating the $0.14 estimate by 178%. Net revenue retention climbed to 126%, signalling strong expansion from existing customers. Remaining performance obligations grew 38% year-on-year to $9.21 billion. Snowflake raised its full-year product revenue guidance to $5.84 billion (31% growth). The company’s stock surged approximately 37% after hours, the largest single-session gain in recent memory for a major tech company, directly boosting sentiment toward Indian IT in the Indian IT index.

How does the Nifty IT index benefit from strong US software earnings?

Ans. The The sector index benefits from strong US software earnings through two channels. First, strong US software company results signal robust corporate technology spending, which directly translates into deal flow for Indian IT services companies like Infosys, TCS, Wipro, HCL Tech, and Tech Mahindra, who earn the majority of their revenues from US enterprise clients. When Salesforce, Snowflake, or Workday grow rapidly, Indian IT companies providing implementation, customisation, and managed services for these platforms also win more business. Second, US software company earnings set the sentiment tone for global technology stocks, and Indian IT stocks have a high correlation with the Nasdaq Composite, which hit a record high of 26,934.84.

What are the company-specific factors supporting Nifty IT stocks?

Ans. Beyond the US earnings trigger, two company-specific developments supported The IT index constituents. TCS announced a partnership with French artificial intelligence firm Mistral to provide frontier-grade AI capabilities across enterprise functions, enhancing TCS’s AI service offering and signalling its ability to build relationships with leading global AI model providers. Wipro announced an expansion of its partnership with ServiceNow focused on deploying agentic AI workflows across enterprise functions including IT, human resources, procurement, and cybersecurity. Wipro had rallied 5% in the previous session on this announcement and its ADRs climbed 18.54% to $2.43 on the NYSE, with Infosys ADRs rising 2.5% to $12.70 in sympathy.

What is the outlook for Nifty IT stocks going forward?

Ans. Technically, the The IT sector index sustaining above the 29,650 mark opens the door for a further recovery toward 31,280 in the near term. A breach below 28,800 would invite selling pressure. The fundamental outlook is supported by improving enterprise technology spending as evidenced by US software earnings beats, the rupee depreciation tailwind (which increases INR value of USD revenues), India’s fourth-place global AI ranking, and the broader recovery of technology valuations after a sharp 22% YTD correction in The technology index. Nuvama maintains Buy on TCS (target Rs 3,650), Infosys (Rs 1,650), Wipro (Rs 255), TechM (Rs 1,750), LTIM (Rs 6,200), Coforge (Rs 2,200), Persistent (Rs 6,100), and Mphasis (Rs 3,200).

Why did Nifty IT rally even as the broader Indian market fell on June 2?

Ans. Indian IT rose 2.66% on June 2, 2026 while the Nifty 50 fell 0.70% and Sensex dropped 0.68%, making it the sole sectoral outperformer in a broadly falling market. This divergence reflects two distinct dynamics: while the broader market remains weighed down by elevated crude oil prices, FII selling, and monsoon concerns, IT stocks are driven by US-specific catalysts that are largely independent of India’s macro headwinds. The rupee weakness that hurts other sectors like auto, aviation, and FMCG actually benefits IT companies by boosting their dollar-denominated revenue in rupee terms. This makes The sector a natural hedge within an Indian equity portfolio against broad macro weakness driven by crude oil and geopolitical risk.