Nifty IT Surges 2.2% Today 29 May 2026: 5 Key Reasons Behind the Rally – TechM, Infosys, HCL Tech Lead

The Nifty IT index is the standout performer in today’s stock market – surging 2.2 percent to 29,657.70, adding 751 points in a single session. Nifty IT is by far the top-performing sectoral index today, outpacing the Nifty 50 (+0.11%), Nifty Bank (+0.38%) and Nifty Auto (+0.13%) by a wide margin. All 10 constituents of all 10 constituents of the sector are trading higher. Tech Mahindra (Rs 1,476), HCL Technologies (Rs 1,180), Infosys (Rs 1,182), TCS and Wipro are the key contributors. Here are the 5 key reasons why the IT sector is surging today.

5 Key Reasons Why Nifty IT Is Surging Today

Reason 1: Rupee at Rs 96.26 – A Direct EPS Tailwind for All IT Exporters

The single most important structural driver of today’s IT sector rally is the Indian rupee trading at Rs 96.26 against the US dollar – its weakest level in recent memory. Indian IT companies earn 80 to 85 percent of their revenue in US dollars (or euros and sterling). Every 1 percent depreciation in the rupee directly translates to approximately 40 to 50 basis points improvement in INR-reported earnings per share without any change in the underlying business.

From Rs 89.86 at the start of 2026 to Rs 96.26 today, the rupee has depreciated 7.1 percent year-to-date. This translates to approximately 3 to 4 percent incremental EPS uplift for FY27 for Infosys, TCS, HCL Tech, Wipro and Tech Mahindra – purely from currency – on top of organic growth. Analysts tracking Nifty IT have been revising FY27 EPS estimates upward through May 2026 as the rupee has steadily weakened. Today’s session reflects continued institutional buying to price in this currency EPS accretion.

• Rupee level today: Rs 96.26/USD – 7.1% weaker than January 2026 (Rs 89.86)
• EPS impact: ~3-4% incremental FY27 EPS for large-cap IT – on top of organic revenue growth
• Beneficiaries: Infosys (60% North America revenue), TCS, Wipro, HCL Tech, Tech Mahindra – all >75% dollar revenue

Reason 2: Post-Holiday Catch-Up Buying After TechM’s 4.85% Surge on 27 May

The Nifty IT index surged on 27 May (the last trading day before the Bakri Id holiday) with Tech Mahindra leading at +4.85%, Infosys +2.38%, Wipro +1.31%, HCL Tech +1.23% and TCS +1.14%. The Nifty IT index was already the top Nifty 50 sectoral performer on 27 May. Today (29 May) is the first trading session after the Bakri Id holiday on 28 May – and the post-holiday session is seeing continuation buying from institutional investors who did not complete their positions on 27 May.

Tech Mahindra’s 4.85 percent surge on 27 May was triggered by strong Q4 FY26 results that showed operating margin recovery – the company’s multi-year cost restructuring programme under CEO Mohit Joshi is beginning to show tangible EBITDA improvement. When the largest single-day gain in a large-cap IT stock like TechM goes untraded for a day (due to the holiday), the first available session typically sees follow-through buying as momentum traders and institutions complete their positioning.

• TechM on 29 May: +1.28%
• Infosys on 29 May: +3.97%
• Wipro on 29 May: +2.44%
• HCL Tech on 29 May: +1.80%

Reason 3: Strong Global Cues – Nikkei +2.27%, GIFT Nifty +0.39%

Global market signals today are strongly positive for technology and growth stocks. The Nikkei 225 in Japan is up 2.27 percent to 66,162 – its strongest single session in recent weeks. The Hang Seng is up 1.14 percent to 25,290. GIFT Nifty opened at 23,966, up 92.50 points (+0.39%) over the previous Nifty close of 23,649. These Asian market gains reflect improving global risk appetite and a rotation back into technology-heavy indices.

The US markets on 28 May (overnight data): the Dow Jones was at 50,644.28 (+0.36%) and the NASDAQ Composite at 26,674.73 (+0.07%), remaining near multi-month highs. Continued strength in US technology stocks – which include the hyperscalers that are India’s largest IT clients (Microsoft, Amazon, Google, Meta) – is interpreted by investors as a signal that enterprise IT spending remains resilient despite the US-Iran conflict and elevated crude prices. Nifty IT has historically tracked NASDAQ with a 60 to 70 percent correlation.

• Nikkei 225 today: 66,162.00 (+2.27%) – strong Asian cue
• GIFT Nifty today: 23,966.00 (+0.39%) – pre-market positive indicator
• US Dow Jones (28 May): 50,644.28 (+0.36%) | NASDAQ: 26,674.73 (+0.07%)

Reason 4: AI Narrative Reversal – From Fear to Opportunity

One of the most significant catalysts for the broader IT sector recovery in May 2026 has been a fundamental shift in how investors are pricing the impact of Artificial Intelligence on Indian IT companies. Earlier in 2026, the IT index fell sharply as fears grew that AI tools would replace Indian IT headcount and disrupt the traditional IT services model. The Nifty IT index fell over 5 percent in just four sessions in early May on these AI-led concerns.

However, Q4 FY26 earnings have reframed the narrative. Infosys stated it is a preferred AI partner for 15 of the top 25 global banking clients. Tech Mahindra’s AI-driven cost optimisation is the reason for its margin recovery. HCL Tech’s products and platforms business (HCLSoftware) is actively building AI capabilities into its enterprise software suite. Analysts are increasingly recognising that AI is not eliminating Indian IT – it is expanding the total addressable market by creating new service categories: AI implementation, model training infrastructure, GenAI consulting and AI-native application development. Cognizant’s $1 billion buyback expansion in May also signalled institutional confidence in the IT sector outlook.

• Infosys: Preferred AI partner for 15 of top 25 global banking clients
• TechM: AI-driven cost optimisation driving margin recovery – Q4 FY26 results catalyst
• HCL Tech: HCLSoftware building AI capabilities into enterprise suite
• Cognizant: Increased share buyback target by $1 billion in May 2026 – institutional confidence signal

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Reason 5: Bargain Hunting – Nifty IT Still 26% Below 52-Week High

Despite today’s 2.2 percent surge, the index at 29,657 remains approximately 26 percent below its 52-week high of approximately 40,000. Individual stocks within the index are at even sharper discounts: HCL Technologies at Rs 1,180 is near its 52-week low of Rs 1,140 – just Rs 40 above the one-year floor. Infosys at Rs 1,182 is 31.6 percent below its 52-week high of Rs 1,728. TechM at Rs 1,476 is 15.6 percent below its 52-week high of Rs 1,749.

Value-conscious domestic institutional investors – who have been buying Rs 62,083 crore of Indian equities in May 2026 alone – are increasing allocation to IT at these discount-to-peak levels. The combination of structural fundamentals (rupee tailwind, AI narrative reversal, Q4 margin recovery) with attractive valuations (HCL Tech at PE 20x vs peers 28-30x) is drawing fresh domestic capital into the Nifty IT index. This bargain hunting dynamic is particularly visible in HCL Tech and Wipro – the two large-cap IT stocks closest to their 52-week lows.

• HCL Tech: Rs 1,180 vs 52W high ~Rs 1,985 – near 52W low, PE 20x vs peer average 28-30x
• Infosys: Rs 1,182 vs 52W high Rs 1,728 – 31.6% below peak, PE 16.5x
• TechM: Rs 1,476 vs 52W high Rs 1,749 – 15.6% below peak, margin recovery story
• DII buying MTD May: Rs 62,083 crore – domestic institutions increasing IT allocation at discount levels

Nifty IT Index: All 10 Stocks Rally Today

All 10 constituents of all index constituents are trading higher today – a broad-based rally that distinguishes a genuine sector re-rating from individual stock moves. The index components include TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra, LTIMindtree, Mphasis, Coforge, Oracle Financial Services Software (OFSS) and Persistent Systems. When all 10 Nifty IT stocks rally simultaneously, it reflects institutional sector-level buying rather than selective stock picking – a stronger signal for the index’s near-term trajectory.

• Tech Mahindra (TECHM): Rs 1,476 | Top performer in yesterday’s session (+4.85%), continuation today
• Infosys (INFY): Rs 1,182 | Rs 25 final dividend, record date 10 June 2026 – dividend window
• HCL Technologies (HCLTECH): Rs 1,180 | Near 52W low – highest bargain-hunting value in large-cap IT
• Wipro (WIPRO): Gaining – Q4 FY26 results showed 7% YoY revenue growth expectation
• TCS: +1.14% on 27 May – steady outperformer in today’s Nifty IT rally

Will the Nifty IT Rally Sustain? What Experts Say

The Nifty IT index has now gained sharply over multiple sessions – from its May 2026 lows toward the 29,657 level today. Technical analysts are watching 23,938 as the key Nifty 50 resistance – if the broader market holds above this level, IT stocks are likely to see continued buying. On the downside, index support is at 28,500 and 27,800.

The fundamental case for the rally sustaining rests on three pillars: (1) the rupee is unlikely to reverse sharply given the structural dollar demand from crude oil imports at $105+ per barrel; (2) FY27 enterprise IT budgets are being set in Q1 calendar year 2026 – deal wins and commentary will flow through Q1 FY27 earnings in July; (3) the 26 percent discount to 52-week highs means even a partial re-rating creates significant return potential. However, any sharp reversal in the rupee (toward Rs 92 to Rs 93) or negative commentary on US enterprise discretionary spending could trigger a pullback. Consult a SEBI-registered advisor before investing.

Disclaimer: This article is for informational and educational purposes only. Nothing in this article constitutes investment advice, a recommendation to buy or sell securities, or a solicitation of any offer to buy or sell securities. Univest is a SEBI-registered research analyst (INH000014019). Readers should conduct their own research and consult a SEBI-registered investment advisor before making any investment decisions. Past performance of any stock or sector is not indicative of future results. Investments in equity markets are subject to market risks.

FAQs on Nifty IT Rally Today

Why is Nifty IT surging today on 29 May 2026?

Ans. Nifty IT is surging 2.2% today because of 5 key reasons: (1) Rupee at Rs 96.26 – direct 3-4% FY27 EPS tailwind for IT exporters; (2) Post-holiday catch-up buying after TechM’s 4.85% surge on 27 May; (3) Strong global cues – Nikkei +2.27%, GIFT Nifty +0.39%; (4) AI narrative reversing from fear to opportunity; (5) Bargain hunting – Nifty IT still 26% below 52W high with HCL Tech near 52W low.

Which Nifty IT stocks are the biggest gainers today?

Ans. All 10 IT index constituents are trading higher today. Tech Mahindra (Rs 1,476) is the index leader continuing from its 4.85% surge on 27 May. HCL Technologies (Rs 1,180, near 52W low) and Infosys (Rs 1,182, dividend record 10 June) are also top movers. TCS, Wipro, Coforge, Persistent Systems, LTIMindtree, OFSS and Mphasis are all positive.

Is the rupee helping Nifty IT today?

Ans. Yes – the rupee at Rs 96.26 is a primary driver of the Nifty IT rally today. Indian IT companies earn 80-85% revenue in USD. At Rs 96.26 vs Rs 89.86 at the start of 2026, the 7.1% rupee depreciation adds approximately 3-4% to FY27 INR EPS – purely from currency. Every further 1% rupee depreciation adds another 40-50 bps to Nifty IT earnings.

Should I buy Nifty IT stocks today?

Ans. Nifty IT at 29,657 is still 26% below its 52-week high. HCL Tech (Rs 1,180, PE 20x), Infosys (Rs 1,182, PE 16.5x, dividend 10 June) and TechM (Rs 1,476, margin recovery) are three stocks worth researching. However, the index has already rallied sharply from May 2026 lows – entry on dips toward 28,500-28,800 may offer better risk-reward. Consult a SEBI-registered advisor before investing.