Nifty IT surges 3%: TCS, Infosys, LTM, HCLTech shares climb after Nvidia's strong results

Information technology (IT) stocks witnessed a sharp upmove on Friday, with the Nifty IT sub-index gaining more than 3 per cent as all its constituents traded in positive territory. The sector's gains came amid improved sentiment around global technology stocks following Nvidia's strong quarterly results and upbeat outlook.

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 were trading higher, with gains of up to 5.18 per cent at the time of writing.

Devarsh Vakil, Head of Prime Research at HDFC Securities, said Nvidia's second-quarter earnings exceeded expectations and reassured investors about the durability of the artificial intelligence (AI) boom.

"Nvidia posted second-quarter earnings that crushed expectations. The results reassured investors on the durability of the AI boom," Vakil stated.

Ponmudi R, CEO of Enrich Money, said the IT sector has emerged as a key outperformer, supported by the global technology backdrop and renewed optimism around AI following Nvidia's results and outlook.

"The positive global sentiment is providing support to Indian IT stocks and lifting sentiment across the sector," he added.

Nvidia results

Nvidia reported a 106 per cent year-on-year (YoY) increase in second-quarter fiscal 2027 revenue to $96.2 billion, according to its earnings release. The growth was driven by continued demand for computing infrastructure used in AI.

The US chipmaker's net income more than doubled to $59.7 billion, while diluted earnings per share (EPS) rose 128 per cent YoY to $2.46 on a GAAP basis.