$TCS

Information technology stocks led the market rally on Monday, with heavyweights Infosys and TCS gaining up to 3% each as improving expectations around the US Federal Reserve's interest rate outlook boosted sentiment toward the rate-sensitive sector. The rally followed a sharp decline in crude oil prices after the United States and Iran paused military action over the weekend, easing inflation concerns and reducing expectations of a near-term US interest rate hike. The Nifty IT index climbed 2.25%, making it the top-performing sectoral index on the NSE. The broader market also traded firmly in positive territory, with the Sensex rising 533 points (0.7%) to 76,593, while the Nifty 50 advanced 152 points (0.6%) to 23,920. Market breadth remained strong, with 2,569 stocks advancing against 868 declining, while the India VIX fell 5.63%. Four of India's five largest IT companies featured among the top gainers on the Nifty 50. Infosys rose 2.98%, Tech Mahindra gained 2.38%, TCS advanced 2.11%, and HCL Technologies added 2.10%. LTIMindtree also climbed 1.96%, while Wipro was the only major IT stock trading lower, slipping 0.76%. The decline in crude oil prices prompted investors to scale back expectations of an imminent rate hike by the US Federal Reserve. According to CME FedWatch data cited by Reuters, markets are now pricing in a 33.7% probability of a 25-basis-point rate hike at the Fed's policy meeting concluding on Wednesday, down from 37.4% on Friday. Lower interest rate expectations are generally positive for technology stocks, as declining discount rates tend to support higher valuations for growth-oriented companies.