Nifty IT Stages Strong Recovery; Gains Over 6% in Two Sessions

The Nifty IT Index witnessed a sharp rebound of more than 6% over the last two trading sessions, reclaiming its position above the 50-day EMA and signaling improving market sentiment towards the sector. The primary trigger behind the rally has been strong global technology cues. Recent earnings from major US software companies such as Snowflake, Salesforce, and Workday have reinforced confidence that enterprise spending on Artificial Intelligence (AI), cloud computing, and digital transformation remains healthy. Snowflake's robust product revenue growth of 34% has particularly boosted optimism around the global technology spending cycle. On the domestic front, Indian IT companies continue to strengthen their AI capabilities through strategic partnerships. TCS recently announced a collaboration with Mistral AI, while Wipro expanded its partnership with ServiceNow to accelerate enterprise AI adoption. These developments have helped ease concerns that AI could disrupt the traditional IT services business model, shifting the narrative towards AI being a growth opportunity. Another significant catalyst has been Wipro's ₹15,000 crore share buyback, with June 5, 2026 fixed as the record date. The buyback announcement has improved investor confidence, supported valuations, and generated positive sentiment across the broader IT sector. Technically, the index had become oversold after a prolonged correction, and the recent surge above the 50-EMA suggests both short-covering and fresh buying interest. If the momentum sustains, the Nifty IT Index could continue its recovery journey in the coming weeks. $INFY $TCS $HCLTECH $TECHM