Quick Take
- Nifty IT index closed up 3.32% at 30,418.35 on July 28, 2026, led by Coforge.
- Coforge Q1FY27 profit jumped 110% to Rs 518.6 Cr ($55.6 Mn); revenue rose 49% YoY.
- A foreign broker upgrade and a global chip selloff pushed money into Indian IT stocks.
In This Article
The Nifty IT index soared 3.32% to close at 30,418.35 on the National Stock Exchange (NSE) on July 28, 2026, its strongest session in a multi-day run. Coforge Ltd led the surge with a near 10.3% jump after its June quarter earnings.
The rally followed a foreign brokerage’s upgrade of the Indian IT sector to “Neutral” from “Underweight”, Business Standard reported. Global cues also helped, as investors rotated out of AI chipmakers into software and IT services stocks. Coforge posted a 110% year-on-year jump in net profit for the quarter, according to the company’s official results release.
StartupFeed Insight
One number tells the real story: the Nifty IT index is still down about 14% over the past year even after this bounce. That gap means the sector is climbing off a low base, not off strength. Founders in SaaS and AI services, plus IT job seekers, should watch this closely, because a real hiring and deal revival needs steady quarters, not one earnings pop. StartupFeed expects at least two more large-cap IT results (Infosys, TCS commentary) to decide the trend by the September quarter. If order books hold above 40% YoY growth, the recovery sticks. If not, this rally fades by October 2026. By Harshvardhan Jain.
What drove the Nifty IT index higher?
The Nifty IT index gained 3.32% on July 28, 2026, far outpacing the benchmark Nifty 50, which slipped 0.04% to close at 23,985.35. The IT pack was the day’s top sectoral gainer on the NSE. It marked the third straight rising session for the index.
| Metric | Detail | Notes |
|---|---|---|
| Nifty IT close (Jul 28) | 30,418.35 | Up 3.32% on the day |
| One-month gain | +11.00% | Business Standard, market data |
| One-year change | Down 14.00% | Nifty 50 down 2.82% in same period |
| 52-week low | 25,699.10 | Touched July 1, 2026 |
| Nifty 50 close (Jul 28) | 23,985.35 | Down 0.04% on the day |
The most striking fact: the Nifty IT index has bounced back around 18% from its July 1 low. That shows how fast money returned to a sector many investors had written off just weeks earlier.
About the Nifty IT Index
The Nifty IT index tracks 10 large information technology companies listed on the NSE, including Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, LTIMindtree, Tech Mahindra, Coforge, Mphasis, Persistent Systems, and Oracle Financial Services Software (OFSS). It is a benchmark for the Indian IT services sector. The index is managed by NSE Indices Limited and reflects broad demand trends in global technology spending.
How strong were the Coforge Q1 results?
Coforge reported a 110% year-on-year jump in net profit (PAT) for the June 2026 quarter (Q1FY27), the trigger for the day’s IT rally. The mid-tier IT services firm posted PAT of Rs 518.6 Cr ($55.6 Mn), up from Rs 247.2 Cr a year earlier.
| Metric (Q1FY27) | Figure | Growth YoY |
|---|---|---|
| Revenue | Rs 5,527.7 Cr ($592.2 Mn) | +49% (INR), +33% (USD) |
| EBITDA | Rs 1,123.3 Cr ($120.3 Mn) | +74% (INR) |
| Net Profit (PAT) | Rs 518.6 Cr ($55.6 Mn) | +110% (INR) |
| EBIT margin | 16.0% | Up 414 bps YoY |
| 12-month order book | $2.23 Bn | +44% YoY, +27% QoQ |
The board also approved an interim dividend of Rs 4 per share, with an August 3, 2026 record date. Coforge said the Encora acquisition is now fully operationally integrated, and headcount rose to 46,228, according to the company release.
About Coforge
Coforge Limited (NSE: COFORGE) is an AI-native IT and engineering services company headquartered in Greater Noida, India, and Princeton, New Jersey. Led by Chief Executive Officer Sudhir Singh, the firm serves banking, insurance, travel, and healthcare clients worldwide. It employs over 46,000 people and reported quarterly revenue of Rs 5,527.7 Cr in Q1FY27. Coforge trades on both the NSE and BSE and is a Nifty IT index constituent.
Why are investors buying IT stocks now?
Investors are buying Indian IT stocks because a foreign brokerage upgraded the sector and global money rotated out of costly AI chip stocks. US software stocks outperformed semiconductor stocks overnight, which lifted sentiment for Indian IT shares, Business Standard reported.
“Our Q1 performance, with 21.1% sequential growth and 33.3% YoY growth in US dollar terms, reflects the strength of our differentiated capabilities and an execution intensity that is uniquely our own… FY27 is shaping up to be an exceptional performance year for the firm,” said Sudhir Singh, Chief Executive Officer, Coforge Ltd.
The move also came before the US Federal Reserve’s policy decision. Some analysts caution that these catalysts, a Fed cut and stronger tech spending, are not confirmed yet. Structural challenges around discretionary client spending also remain in place.
Which IT stocks moved the most?
Coforge was the standout in the Nifty IT index, gaining about 10.31% intraday on July 28, 2026. Other frontline names also joined the rally as buying spread across the sector.
| Stock | Day’s Gain (Jul 28) | Segment |
|---|---|---|
| Coforge | +10.31% | Mid-cap IT |
| TCS | +4.46% | Large-cap IT |
| Tech Mahindra | +3.82% | Large-cap IT |
| Infosys | +2.98% | Large-cap IT |
What sets this session apart is breadth: all 10 index constituents traded in the green, not just the earnings mover. That signals sector-wide sentiment, not a single-stock story.
What’s Next
The next test comes from large-cap results and management commentary through the September 2026 quarter. Watch whether order-book growth stays strong across TCS, Infosys, and HCL Technologies, and whether the US Fed decision supports global tech spending. A confirmed demand revival would extend this run. Will Indian IT hold its gains, or is this a short-lived bounce off a low base?
Frequently Asked Questions
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.
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