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TCS, Tech Mahindra, and Infosys Propel Nifty IT Index to Two-Month Peak
Indian technology stocks extended their winning streak on Wednesday, November 12, as bullish sentiment swept across the sector for the third consecutive session. The Nifty IT index neared a two-month high, cementing its position as a key contributor to the recent rally in India’s frontline indices.
Tech Mahindra Leads the Charge
All ten constituents of the Nifty IT index closed higher, with Tech Mahindra spearheading gains, soaring 3.6% to ₹1,459. Close behind, LTIMindtree, Mphasis, and TCS climbed up to 3.5%, while other major players including Persistent Systems, Oracle Financial Services, HCL Tech, Coforge, Wipro, and Infosys saw increases between 1.5% and 2.2%.
The strong performance of individual counters pushed the Nifty IT index up 2.16% to a day high of 36,911, marking its highest level since September 18. Over the past three sessions, the index has gained a remarkable 5.10%, highlighting renewed investor confidence in India’s technology sector.
H1-B Visa Clarifications Boost Market Confidence
The rally was partly fueled by comments from US President Donald Trump, who appeared to soften his stance on H1-B visas during a Tuesday interview. Trump emphasized the need to “bring in talent” to the United States, noting that the country “does not have plenty of talent” to meet technological demands.
Trump clarified, “You can’t take people off the unemployment line and say, ‘go make missiles,’” but acknowledged the importance of skilled foreign workers, saying, “We also do have to bring in talent.”
These remarks offered reassurance that skilled talent flows from India to the US could continue, benefiting Indian IT companies that rely heavily on H1-B workers. This comes after the Trump administration imposed a $100,000 fee on H1-B visas in September, a move that previously caused concern among employers and workers both in India and the US.
US Government Shutdown Nears Resolution
Investor sentiment was further supported by the news of an imminent resolution to the US government shutdown. The Senate passed a temporary funding measure, keeping most of the government operational until January 30, with some agencies funded until September 30.
The House of Representatives is expected to vote on the spending package once it reconvenes, after which it will go to President Trump, who has already endorsed the measure. The potential end to the shutdown alleviates concerns over prolonged economic disruptions, boosting confidence in sectors like technology.
Progress on US-India Trade Deal Lifts Sentiment
Further optimism came from signs of progress in the US-India trade negotiations. On Monday, President Trump suggested that tariffs on India would be lowered “very substantially,” signaling easing tensions over India’s Russian oil imports.
“We’re working on a very good deal with India. The tariffs will come down very substantially. It will happen at some point,” Trump remarked during the swearing-in ceremony of Sergio Gor as US ambassador to India.
If realized, the reduction could lower tariffs from the current 50% to 15–16%, according to earlier reports, giving Indian exporters and IT service providers a potential boost as trade relations normalize.
Expectations of a US Fed Rate Cut Provide Additional Tailwinds
Market optimism was also bolstered by speculation about another US Federal Reserve rate cut. Recent data revealed that US companies shed an average of 11,250 jobs per week in the four weeks ending October 25, pointing to a slowing labor market.
Traders currently price in roughly a 68% chance of a 25 basis-point rate cut next month, supported by declining consumer sentiment—the second-lowest reading on record—and anticipation of official economic data following the longest US government shutdown in history.
This combination of factors—H1-B visa clarity, trade deal progress, and potential Fed easing—has created an upbeat environment for Indian IT stocks, prompting investors to increase allocations to the sector.
As the Nifty IT index hovers near its two-month high, all eyes are on how the sector reacts to ongoing global developments. The interplay between US immigration policies, trade negotiations, and monetary stimulus expectations will likely dictate short-term momentum for Indian tech stocks.
With strong gains across Tech Mahindra, TCS, LTIMindtree, and Mphasis, analysts suggest that continued foreign inflows and positive geopolitical developments could sustain the rally, making Nifty IT one of the key performers in India’s stock market.
