India Stocks: IT leads Indian shares higher ahead of Fed decision

Infosys

29/07/2026 05:44

Updates for morning trade
By Bharath Rajeswaran and Vivek Kumar M
July 29 (Reuters) - Indian equities rose on Wednesday as IT stocks, seen as relatively insulated from an AI-driven selloff in Asian technology shares, extended gains ahead of the Federal Reserve's policy decision later in the day.
Markets largely expect the U.S. central bank to keep interest rates unchanged, though the outlook remains clouded by persistent inflation concerns among a growing number of Fed policymakers. 
Asian stocks extended a brutal selloff as anxiety about AI valuations, rising competition and spending rocked markets ahead of crucial earnings from big tech firms.
India is viewed as a hedge against the AI trade, given its limited exposure to pure-play artificial intelligence companies.
In Mumbai, the benchmark Nifty 50 .NSEI rose 0.98% to 24,219.45, while the BSE Sensex .BSESN gained 1.07% to 77,587.26 by 10:10 a.m. IST.
The IT index .NIFTYIT gained 2.5%, taking its three-session rise to 8.3%. Infosys INFY.NS rose 4% and Coforge COFO.N added 3.6%.
"Domestic markets have outperformed their Asian peers this week, as the anti-AI trade has had a positive impact on Indian IT sector," said Sunny Agrawal, head of fundamental research at SBI Securities.    
The Fed decision and commentary will be closely watched for signals on the timing and scope of any future rate moves, against the backdrop of crude price volatility due to the Iran war.
Brent LCOc1 rose 4.1% as joint strikes in Iraq by the U.S. and Saudi Arabia reignited geopolitical uncertainty. O/R   
In markets, fourteen of the 16 major sectors advanced. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 rose 0.8% each.      
Despite an uncertain macroeconomic outlook and a likely weak monsoon, strong quarterly results so far "should provide greater comfort to the market's earnings outlook," analysts led by Sanjeev Prasad of Kotak Institutional Equities said in a note.       
Among stocks, infrastructure major Larsen & Toubro LART.NS gained 3% after posting a quarterly profit rise on strong order inflows.
Cholamandalam Investment CHLA.NS rose 2.2% and S H Kelkar SHKE.NS climbed 15.5% on upbeat quarterly earnings.

 (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Mrigank Dhaniwala)
 ((VivekKumar.M@thomsonreuters.com;))