Key facts
- Accenture, Cognizant, IBM and other US software stocks rallied up to 7%
- Indian IT stocks expected to open gap-up following US gains
- Rally contrasts with chip stocks falling on DeepSeek hardware news
- Nifty IT index heavily influenced by US software sector cues
Indian information technology stocks were on course for a buoyant start after major US software companies staged a sharp rally, with Accenture, Cognizant, IBM and other US software names climbing as much as 7% in overnight trade. The move typically filters through directly to Indian IT counters when markets open, given the deep linkages between Indian outsourcing firms and their American clients.
The rally in US software stocks suggests that investor sentiment toward enterprise technology spending remains resilient, even amid broader concerns about AI disruption. Companies like Accenture and Cognizant serve as bellwethers for Indian IT majors such as Infosys, Wipro and HCL Technologies, since their guidance and performance directly signal the health of global IT services demand.
The contrast with the chip sector's simultaneous sell-off was striking. While hardware names were battered by DeepSeek's in-house chip announcement, pure software and services companies appeared to benefit from a rotation, with investors betting that AI adoption would ultimately drive more spending on enterprise software and consulting rather than less.
For everyday Indian investors, a gap-up in IT stocks has tangible implications — the sector is one of the heaviest-weighted in the Nifty 50 and BSE Sensex, meaning a strong IT opening can lift the broader indices. Traders and long-term investors in IT-heavy mutual funds and portfolios were likely watching the US cues closely ahead of the Indian open.