Stock Market News: After facing global selloff and heavy pressure last week, Indian IT stocks witnessed a strong comeback on Tuesday 17th February. Where last week a decline of about 8.2 percent was recorded in NIFTY IT, which was the worst performance in the last 11 months. At the same time, this index jumped by about 2 to 3 percent in early trading on Tuesday.

rise in IT stocks

Fresh purchases in major IT sector companies like Infosys, Tata Consultancy Services and HCL Technologies played an important role in making the market sentiment positive. At around 10.15 am, NIFTY 50 was down 0.4 percent at 25,674.6, while BSE Sensex was trading at 83,339.7 with a gain of 0.08 percent.

Although Dalal Street had a weak start, the strength in IT stocks compensated for the initial losses. Weakness in Reliance Industries and some financial stocks remained limited, due to which the overall market sentiment remained positive. The biggest reason for this rise in IT shares is believed to be a strategic announcement made by Infosys.

Why are IT stocks rising?

The company has announced a partnership with American AI startup Anthropic. Investors took this news as a positive sign, after which Infosys shares rose by about 3 percent to Rs 1,407 in the initial session. Infosys said that it will collaborate with Anthropic to develop advanced AI solutions for enterprise customers, especially for those regulated sectors where it is mandatory to follow strict rules and compliance standards.

These include banking, healthcare, public service and other industries. Overall, this rally after the recent decline indicates that investors are viewing AI not just as a risk but also as a big opportunity for IT companies.

Also read: Despite heavy pressure, Indian rupee showed strength, broke the pride of US dollar with ‘Dhobi Pachaad’ bet.

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