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Indian IT stocks took centre stage on Monday, November 24, 2025, surging sharply on renewed hopes of a US Federal Reserve rate cut in December, a sharply weaker rupee, and positive corporate developments have combined to put the export-focused sector firmly in the spotlight.
The Nifty IT index climbed as much as 1.81 per cent to hit an intraday high of 37,554.35, outperforming the broader market indices, which opened flat today.
By 12:36 PM, the Nifty IT index was up 1.17% at 37,318.60 after touching an intraday peak of 37,554.35, its strongest single-day move in recent weeks.
Top Stocks Making The Move
Tech Mahindra led the charge with a solid 2.83% gain, trading at Rs 1,503 levels by mid-morning. Mphasis followed closely, jumping 2.52%, while Persistent Systems climbed a healthy 1.71%. Wipro advanced 1.45%, Coforge rose 1.24% and heavyweight Infosys added 1.18% to reach Rs 1,563, further supported by its ongoing Rs 180-billion share buyback programme that opened last week.
HCL Technologies was up 1.02%, while LTIMindtree rose 0.94% and Oracle Financial Services Software gained 0.72%, all staying firmly in the green. Tata Consultancy Services (TCS) lagged slightly in early trade but later turned positive with a 0.23% gain.
By 12:36 PM, the Nifty IT index was up 1.17% at 37,318.60 after touching an intraday peak of 37,554.35, its strongest single-day move in recent weeks.
Monetary Policy Pivot: The Primary Catalyst
The primary driver behind the sudden influx of foreign institutional buying and the subsequent surge in IT stock prices is the sharp reversal in US rate-cut expectations. Following a prolonged period of subdued performance, the sector is experiencing a significant uplift.
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The recovery has been fueled by growing sentiment towards monetary easing by the Federal Reserve, sparked by dovish remarks from key policymakers.
According to Sugandha Sachdeva, founder of SS WealthStreet, “After a prolonged phase of underperformance, Indian IT stocks are staging a comeback, with the Nifty IT index rising 4.29% month-to-date, marking its second consecutive month of gains.”
She further notes that this recovery is “driven primarily by renewed optimism around US monetary policy after dovish remarks from New York Fed President John Williams, who signaled that interest rates could be reduced ‘in the near term.'”
Expectations of lower US interest rates are crucial, as they typically boost technology spending in the world’s largest IT outsourcing market and enhance the relative attractiveness of emerging markets like India, thereby encouraging foreign portfolio inflows into the sector.
Rupee’s Depreciation and Corporate Tailwinds
Sugandha also added that, in addition to the promising global macro cues, domestic and currency-related factors are providing a powerful supplementary boost. The sharp depreciation of the Indian rupee to a record low near 89.70 last week has added another significant tailwind.
Since Indian IT companies earn a sizeable portion of their revenue in US dollar terms, a weaker rupee directly translates to improved operating margins and profit visibility when repatriated and converted back into Indian rupees, reinforcing positive sentiment.
Furthermore, corporate actions have also strengthened the index. Infosys’ massive Rs 180 billion share buyback, which opened on November 20, has acted as a strong anchor, lifting the overall sector and adding momentum to peer stocks.
Taken together, these supportive factors- Fed rate cut expectations, favorable currency dynamics and corporate actions are helping IT stocks regain traction after months of consolidation. If global demand stabilises and US economic signals continue to soften, analysts believe Indian IT stocks may see additional upside in the coming months.