India's IT stocks climb as U.S. shutdown risks ease, rate cut hopes lift sentiment

LTM

12/11/2025 08:23

** India's information technology index .NIFTYIT rises 2.2% to 36,911.95, the highest since September 18, 2025

** IT index has gained 5.1% in three sessions, outperforming Nifty 50's .NSEI 1.7% rise, exchange data

** Rise in IT companies, which earn a significant share of their revenue from the U.S., comes after the U.S. Congress looked set to end the federal shutdown and firming bets of further rate easing in December 10

** Nuvama says Indian IT companies outperformed expectations in the September quarter, with profit margins led by forex gains, operational efficiencies and robust deal-wins

** Demand environment remains stable, with companies prioritizing strategic investments in next-gen technologies, particularly artificial intelligence, to drive revenue growth, says Nuvama

** Adds IT stocks are trading at attractive valuations after the sharp 15% correction in the last 12 months

** Nuvama maintains "buy" on Coforge COFO.NS, Persistent PERS.NS, Mphasis MBFL.NS, LTIMindtree LTIM.NS, Hexaware HEXW.NS, TCS TCS.NS and Infosys INFY.NS

** Remains negative on Tech Mahindra TEML.NS and Birlasoft BIRS.NS with a "reduce" rating

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))