Indian IT stocks experienced a significant rally on Monday, July 27, 2026, with major players like Infosys, Oracle Financial Services Software (OFSS), and Coforge seeing their shares climb by up to 4%. This broad-based surge propelled all ten stocks within the Nifty IT index higher, reflecting renewed investor confidence in the sector.
Key Drivers Behind the IT Sector Surge
The positive momentum in software exporters' shares was primarily attributed to a strategic rating upgrade for the IT sector by Jefferies. The foreign brokerage revised its stance from 'Underperform' to 'Neutral', signaling a more optimistic outlook. This upgrade came despite the Indian rupee appreciating by 71 paise against the dollar, which typically poses a headwind for export-oriented businesses.
Adding to the positive sentiment were better-than-expected quarterly results reported by several IT firms, which improved overall market perception. Furthermore, softer-than-expected inflation data from the United States reinforced expectations of a less aggressive monetary policy stance from the Federal Reserve, a development generally favorable for growth stocks.
Top Performers and Market Outlook
Infosys emerged as a frontrunner among the Nifty IT index gainers, with its shares rising 3.77% to trade at Rs 1,080.10. Oracle Financial Services Software (OFSS) followed closely, gaining 3.65%, while Coforge and LTM Ltd saw increases of 2.32% and 1.98% respectively. Other prominent IT companies such as HCL Technologies, Tata Consultancy Services Ltd (TCS), Persistent Systems, Mphasis, Wipro, and Tech Mahindra also posted gains exceeding 1% each.
By 2 pm on Monday, the Nifty IT index was trading at 29,465.20, marking an impressive gain of 697.25 points or 2.42%. Market analysts are optimistic about the sector's continued upward trajectory. ICICI Securities commented on the day's performance, stating,
"We believe that ongoing short covering trend may continue in the IT index and it is likely to move towards 30,000 levels in the coming sessions."
Jefferies, in its analysis, noted that IT stocks are currently trading at 13-17 times earnings multiples and anticipates earnings growth for IT firms in the low to mid-single digits over the fiscal years 2026-2028, with Infosys being their preferred pick in the sector.