India's IT stocks head for best month in six years as global AI trade unravels

Persistent Systems

31/07/2026 07:53

** India's IT stocks .NIFTYIT up 16.7% in July; set for biggest pct monthly gain since July 2020
** Four analysts say unraveling of global AI trade and lack of negative surprises in Q1 earnings have powered gains in IT stocks this month
** All 10 constituents rise; Persistent Systems PERS.NS and HCLTech HCLT.NS top gainers, surging 27.6% and 25.7%
** India's largest IT exporters TCS TCS.NS and Infosys INFY.NS rise 17.1% and 13.6%, respectively
** India is seen as relatively insulated from the global AI-trade due to a lack of pure-play companies in the sector 
** IT stocks were hit hard earlier this year due to fears over AI disrupting their business
** However, Indian equities, particularly tech, have been net beneficiaries of the global AI rotation trade, Citi analysts say
** They add that further outperformance of IT stocks would require broadening of AI trade beyond a few global semiconductor stocks
** Despite July gains, IT index is still down 18.7% - biggest loser among major Indian sectors
     

 (Reporting by Vivek Kumar M)
 ((VivekKumar.M@thomsonreuters.com;))