IT stocks rally: Nifty IT jumps over 2% as US Fed rate hike bets ease; TCS, Tech Mahindra, HCL Tech lead

The latest market report highlights that Indian IT stocks rallied sharply on Wednesday as expectations of another near-term US The US central bank interest-rate gain moderated, with the Nifty IT index climbing more than 2 percent. Information Technology stocks dominated the top Nifty 50 and BSE Midcap gainers.

At around 10:45 am, the Nifty IT was up 2.2 percent at 28,279.80, making it one of the best-performing sectoral indices. The upside stood out against a largely flat benchmark Nifty 50, which was down 11 points, or 0.05 percent, at 22,705.

TCS shares rose 3.2 percent to Rs 2,097.80, making the stock the top Nifty gainer. Tech Mahindra advanced 2.6 percent to Rs 1,549.50 and HCL Technologies was up 2.2 percent at Rs 1,248.80. The three IT majors occupied the top three positions on the Nifty gainers' list, highlighting the concentration of buying in technology stocks even as the headline index struggled for direction.

Outside the Nifty, Wipro stock advanced 2.7 percent to Rs 161.08. Infosys stock was marginally down.

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The resilience was not restricted to large-cap IT firms. Several technology stocks were additionally among the leading BSE Midcap gainers.

Coforge jumped 4.8 percent to Rs 1,803.15, while Hexaware Technologies advanced 4.3 percent to Rs 502.75. Oracle Financial Services Software advanced 3.9 percent to Rs 10,804.45, Persistent Systems advanced 2.6 percent to Rs 5,338 and Mphasis was up 2.3 percent at Rs 2,238.50. Tata Technologies additionally rose 3.9 percent to Rs 714.70.

Six IT services firms featured among the top 10 gainers on the BSE Midcap index.

The surge in IT stocks came as expectations of another near-term US The US central bank interest-rate gain moderated. The odds of a rate gain have fallen to 44 percent from nearly 70 percent, according to the CME FedWatch Tool cited by Reuters, amid softer US activity data and more wary signals from policymakers around the need for an immediate follow-up move.

US consumer confidence declined to its lowest level in more than 12 years in September. In the meantime, New York Fed President John Williams stated there was "no need for urgency" following the US Fed's September rate gain, adding that the central bank had time to assess incoming data before deciding on its next move.

Market participants are now awaiting a crucial US inflation reading for further clues on the path of interest rates.

Asian equities were additionally elevated on Wednesday. The MSCI Asia Pacific Index advanced 0.9 percent, with 10 of its 11 industry groups advancing, while equity-index futures indicated upside could extend to European and US markets.

Oil price marks steadied after a sharp decline in the previous session. Brent crude for November delivery was up 0.7 percent at $103.27 a barrel on Wednesday, after settling 2.6 percent softer at $102.59 on Tuesday. WTI rose 0.5 percent to $89.78 after dropping 3.5 percent in the previous session.

Oil's Tuesday slide came as market participants focused on signs of recovering Middle East crude exports, while Wednesday's trade followed indications that supply had risen close to pre-war marks after Saudi Arabia resumed flows through a pipeline that bypasses the Strait of Hormuz.

The broader Indian market remained mixed despite positive market breadth. The Sensex was up 165 points, or 0.23 percent, at 72,694 around 10:45 am, while the Nifty hovered just below the flat line. Around 2,167 shares advanced against 1,431 declines, while 181 were unchanged.

Among other sectors, Nifty Media rose 2.6 percent and Nifty PSU Bank advanced 1.3 percent, while Nifty Energy was up 1 percent. On the other side, Nifty Pharma declined 0.9 percent and Nifty Metal declined 0.7 percent. The India VIX eased 0.4 percent to 13.36.