Nifty IT surges nearly 4%: Coforge, LTM, TCS, Infosys shares climb after Nvidia's strong results

Information technology (IT) stocks witnessed a sharp upmove on Friday, with Nifty IT gaining around 4 per cent as all its constituents traded in positive territory. Nifty IT settled 3.51 per cent higher at 31,281.70.

The sector's gains came amid improved sentiment around global technology stocks following Nvidia's strong quarterly results and upbeat outlook.

Shares of Coforge Ltd, LTM Ltd (formerly LTIMindtree), Tata Consultancy Services Ltd (TCS), Infosys Ltd, Oracle Financial Services Software Ltd (OFSS), Persistent Systems Ltd, HCLTechnologies Ltd, Tech Mahindra Ltd, Wipro Ltd and Mphasis Ltd closed higher, with gains of up to 5.93 per cent.

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.