By BullScreen Editorial Team 
Indian information technology stocks extended their strong rally on Tuesday, with Infosys and TCS surging nearly 6 percent each as investors continued to bet on stronger growth driven by artificial intelligence demand. The gains came even as the broader market remained under pressure.
The Nifty IT index jumped 4.5 percent to 31,204 during late morning trade, making it the best-performing sector on the market. In contrast, the benchmark Nifty 50 slipped 0.3 percent, while banking, energy, pharma, FMCG and infrastructure shares traded mostly lower.
Tata Consultancy Services (TCS) emerged as the biggest gainer on the Nifty 50, climbing 6.2 percent to Rs 2,440. Infosys gained 5.9 percent to Rs 1,273.8, while HCL Technologies rose 4.2 percent and Tech Mahindra advanced 2.4 percent. Wipro also moved higher by 0.9 percent. Five major IT firms ranked among the top gainers on the benchmark index.
The rally also spread across midcap technology stocks. Coforge rose more than 6 percent, while Hexaware Technologies gained 5.7 percent. LTIMindtree, Mphasis, KPIT Technologies, Tata Elxsi and Persistent Systems recorded gains between 2.5 percent and 5 percent.
Market sentiment improved after a strong rally in US technology shares pushed the Nasdaq and S&P 500 to record highs. Software companies in the US gained over 4 percent, supported by optimism that AI adoption is creating fresh business opportunities rather than disrupting traditional software models.
Investor confidence also strengthened after comments from Nvidia highlighted software as a key driver of AI growth. Analysts believe increasing AI spending across cloud computing and enterprise technology could continue supporting demand for IT services in the coming quarters.