Indian information technology (IT) stocks experienced a sharp upward trend on Friday, with the Nifty IT sub-index climbing more than 3%. All constituent companies within the index traded in positive territory, driven by improved sentiment surrounding global technology shares after Nvidia's impressive quarterly results and optimistic forecast.
Leading the gains were shares of LTM Ltd (formerly LTIMindtree), Coforge, Tata Consultancy Services (TCS), Infosys, Oracle Financial Services Software (OFSS), Persistent Systems, HCL Technologies, Tech Mahindra, Wipro, and Mphasis, with some recording increases of up to 5.18%.
Nvidia's Earnings Exceed Expectations
The surge in IT stocks is directly linked to semiconductor giant Nvidia's strong performance. According to its earnings release, Nvidia reported a staggering 106% year-on-year (YoY) increase in second-quarter fiscal 2027 revenue, reaching $96.2 billion. This remarkable growth was primarily fueled by sustained demand for the computing infrastructure critical to artificial intelligence (AI) development.
The US chipmaker's financial results also showed net income more than doubling to $59.7 billion, while diluted earnings per share (EPS) jumped 128% YoY to $2.46 on a GAAP basis.
Analyst Insights on AI Boom and Market Sentiment
Devarsh Vakil, Head of Prime Research at HDFC Securities, commented on Nvidia's results, stating that their second-quarter earnings significantly surpassed expectations. He noted that these results have reassured investors about the long-term durability and strength of the artificial intelligence boom.
Ponmudi R, CEO of Enrich Money, further emphasized the IT sector's emergence as a key outperformer. He attributed this to a favorable global technology backdrop and renewed optimism surrounding AI following Nvidia's strong results and positive outlook. "The positive global sentiment is providing support to Indian IT stocks and lifting sentiment across the sector," he added.