Nifty IT jumps 4% in 2026 as Infosys-Anthropic lifts

IT stocks snap a losing streak

Indian IT stocks rebounded sharply after a prolonged slide, with the Nifty IT index rising nearly 4% on Thursday and looking set to end a four-session losing streak. The move followed a selloff that erased around 6.5% from the index over the previous sessions. Large-cap names led the recovery as investors returned to the sector after weeks of pressure tied to global AI-linked volatility and softer discretionary demand commentary.

The rebound was framed by a shift in investor positioning from expensive AI infrastructure and semiconductor plays toward software and IT services firms that are seen as steadier beneficiaries of enterprise AI adoption. The recovery also came after a period when sentiment had been hit by weak guidance from global peers and concerns that rapid AI product advances could disrupt traditional IT and software spending patterns.

How the Thursday rebound unfolded

Infosys led the gains, jumping over 5% in the session described, while HCLTech, TCS and Tech Mahindra rose between 2.5% and 4%. In intraday deals, the Nifty IT index was reported up about 4% at 26,781 around 10:10 am. A separate snapshot later in the day put the index up nearly 3% at 33,612.30 around 11:35 am, again pointing to a strong bounce after days of weakness.

The broader move was supported by buying across a wider set of IT names. During the session, stocks such as Coforge, Mphasis, HCL Tech, Persistent Systems and TCS were cited among those jumping up to 5%. The bounce followed what was described as the index’s worst weekly drop in 11 months, an 8.2% weekly slide, after several sessions of pressure.

Rotation away from overheated AI chip trades

A key driver highlighted was the rotation out of expensive AI infrastructure and semiconductor stocks into relatively cheaper IT services companies. This mattered because the earlier global AI rally had become concentrated in chipmakers and infrastructure providers, leaving software and services stocks lagging and, in some cases, trading at more attractive valuations.

The renewed interest reflected hopes that the next phase of enterprise AI adoption will translate into demand for system integration, cloud migration, and AI deployment work. Investors also appeared to reassess the outlook for Indian software exporters after the sharp correction in global AI-linked stocks.

Infosys-Anthropic partnership adds a catalyst

A specific trigger cited for the sentiment shift was a strategic partnership announcement between Infosys and Anthropic. Infosys’ sharp move was linked to that collaboration, which investors read as supportive of its enterprise AI strategy.

The market had also been digesting the disruptive narrative around Anthropic’s product direction. Earlier pressure on software and IT names was connected to the launch of plug-ins for Anthropic’s Claude Cowork agent, which was described as being able to automate tasks across legal, sales, marketing, and data analysis. That backdrop made the partnership headline more important, because it offered a tangible linkage between an Indian IT major and a fast-moving AI developer.

Global cues: Accenture guidance, US equities, and Nvidia

Sentiment in Indian IT had been hit after Accenture’s weaker-than-expected guidance triggered a sharp selloff in global technology stocks, with Indian IT companies bearing the brunt. As global technology sentiment stabilised, risk appetite returned to IT services names.

Supportive global cues were also highlighted in later sessions. US equities extended a record-setting run overnight, with the S&P 500 and Nasdaq ending at fresh highs, driven by continued strength in technology stocks, particularly Nvidia. Market commentary also pointed to favourable currency dynamics as another factor supporting IT as an outperformer during the rebound.

Underperformance in H1CY26 put valuations in focus

The rebound came after a steep drawdown earlier in 2026. Nifty IT was described as the top sectoral loser in the first half of calendar year 2026 (H1CY26), falling 30% during the period, compared with a 9% decline in the Nifty 50. Reasons cited included global macroeconomic concerns, weak discretionary spending by clients, an earnings growth-valuation mismatch, and AI-led disruption.

That scale of underperformance set the stage for bargain hunting once selling pressure eased. Commentary in the coverage also referred to investors reassessing “cheap valuations,” leading to pockets of buying even as the longer-term impact of AI on IT services continues to be debated.

Rate-cut expectations and the Fed meeting next month

US rate-cut expectations were another factor cited for fresh interest in IT stocks, alongside hopes of a rebound in technology spending. The logic is straightforward: lower borrowing costs can support corporate budgets for technology, cloud infrastructure, digital transformation and AI projects, which are key revenue pools for Indian IT firms. Since a large share of industry revenue comes from North America, any improvement in the US outlook tends to influence sentiment.

The reports also noted the Federal Reserve’s policy meeting next month, described as the first under Chair Kevin Warsh, as a near-term macro event on investors’ radar. Positioning ahead of that meeting was mentioned as part of the broader setup for renewed buying.

Snowflake’s outlook and global AI demand add another tailwind

A separate catalyst mentioned was strong earnings and AI demand commentary from US-based Snowflake. Snowflake’s shares were said to have surged nearly 50% over four trading sessions after it raised its annual revenue forecast and announced a $1 billion multi-year agreement to use Amazon’s cloud services and AI chips.

That global read-through was linked to optimism that AI spending is translating into stronger demand for enterprise software and cloud services. In that context, Indian IT stocks benefited as investors extrapolated improved software demand and more deal activity.

Key data points at a glance

Market Impact

The rebound improved near-term sentiment around Indian IT at a time when most other sectors were described as declining in at least one snapshot. In one instance, Infosys and TCS were reported to have surged over 5%, helping drive the Nifty IT index up more than 4% to around 31,200 on AI demand hopes. Alongside large caps, midcaps such as Persistent Systems were also cited as top gainers, rising nearly 5% in one session.

For investors, the key market implication was a partial unwind of pessimism that had built up around AI disruption and near-term demand softness. For companies, the shift in narrative from disruption risk to execution opportunities in enterprise AI integration became more prominent, particularly after the Infosys-Anthropic collaboration.

Analysis: why the move matters for Indian IT

The coverage points to a market that is trying to reprice Indian IT away from a pure “AI disrupts services” framing and toward a “AI creates new integration work” framing. Brokerage commentary quoted in the reports argued there is “no existential threat from Gen-AI,” emphasising that enterprises still need system integrators to customise tools and take responsibility for complex environments.

At the same time, the rebound is happening against a backdrop of significant H1CY26 underperformance and macro sensitivity to North America. That combination makes global cues like Accenture guidance, US equity momentum, and Fed policy expectations unusually influential for short-term moves in the IT index.

Conclusion

IT stocks rebounded strongly as investors rotated into software and IT services on improving global cues, valuation comfort after a steep H1CY26 fall, and AI-related catalysts led by the Infosys-Anthropic partnership. The next key swing factors cited include global tech sentiment, updates on enterprise AI spending, and the upcoming US Federal Reserve policy meeting next month.