Infosys, OFSS, Coforge shares rally up to 4%; all 10 Nifty IT index stocks rise

Shares of software exporters gained on Monday, rising up to 4 per cent, even as rupee appreciated 71 paise against the dollar, thanks to an rating upgrade to 'Neutral' by Jefferies on IT sector against 'Underperform' earlier.

Infosys led the NSE IT index gainers, rising 3.77 per cent to Rs 1,080.10. It was followed by Oracle Financial Services Software Ltd , Coforge and LTM Ltd, which gained 3.65 per cent, 2.32 per cent and 1.98 per cent, respectively. HCL Technologies, Tata Consultancy Services Ltd and persistent Systems gained 1-7-2 per cent. while Mphasis, Wipro and tech Mahindra also gained over 1 per cent each. 

IT stocks have also been in focus of late, as better-than-expected results by IT firms improved market sentiment, while softer-than-expected US inflation data reinforced expectations of a less aggressive Federal Reserve policy stance.  

Jefferies reportedly finds valuations attractive for the India IT pack and said Infosys is its preferred IT pick. The foreign brokerage, which said IT stocks are trading at 13-17 times earnings multiples, sees earnings for IT firms to grow in low to mid single digits over FY26-28.  

By 2 pm, the Nifty IT index was trading at 29,465.20, up 697.25 points or 2.42 per cent.

"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," ICICI Securities said on Monday.