Infosys, Persistent, other IT stocks rise up to 3% after tech rally following strong Nvidia earnings

The shares of Indian IT companies gained in trade on Thursday after chipmaker Nvidia released better-than-expected quarterly earnings, sparking a sharp rise on Wall Street.

The Nifty IT index gained more than 1% to 30,936, as seen at 10.30 am. Persistent Systems and Oracle Financial Services Software shares gained around 3% each, while heavyweights Tech Mahindra, HCL Technologies, Infosys, TCS and others gained in the range of 1-2%.

Nvidia earnings:


Nvidia shares jumped on Wednesday after the company reported a 73% year-on-year (YoY) rise in quarterly revenue to $68.1 billion for the fourth quarter of fiscal year 2026. This is the highest-ever quarterly revenue recorded by the company, and is higher than the analysts’ expectation of $65.8 billion. The Jensen Huang-led company said that its next quarter revenue could hit $78 billion.

The chipmaker also reported a gross profit margin of around 75% and generated $34.9 billion in free cash flow. Its diluted EPS jumped 98% YoY to $1.76 during the quarter under review.

Along with the quarterly earnings, Nvidia announced that it will pay its next quarterly cash dividend of $0.01 per share on April 1 this year to all shareholders, as on the record date March 11.

Nvidia CEO and Founder Jensen Huang said that computing demand is growing exponentially, and the agentic AI inflection point has arrived. “Enterprise adoption of agents is skyrocketing. Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth,” he added.

Wall Street rises after Nvidia results:

US stock markets ended higher on Wednesday after Nvidia’s record results. The tech-heavy Nasdaq Composite gained around 1.3% to 23,152, while the Dow Jones Industrial Average and S&P 500 gained 0.63% and 0.81% respectively.

The S&P Software & Services index jumped 2.9%. Nvidia shares jumped around 3%, while Microsoft shares gained over 2%. Amazon shares rose nearly 1%, while Apple shares were up 0.5%.

Indian IT stocks:

Indian IT stocks have seen significant volatility recently, accompanying their Wall Street peers. The Nifty IT index has plunged 21% so far this month, after recording marginal gains in January.

The rout began earlier this month after Anthropic launched plug-ins for its Claude Cowork agent which could automate tasks across legal, sales, marketing and data analysis.

The IT index closed higher earlier yesterday, closing 1.57% higher on Wednesday.

What should investors do?

Sushovon Nayak, Research Analyst at Anand Rathi Institutional Equities, believes the AI technology cycle is still at the beginning of the monetisation phase, with Indian IT likely to emerge as a key beneficiary of the current AI spending. “We expect high volumes of legacy modernisation, data engineering, and transformation-led partnership work to come the way of Indian IT players, given their role as implementation partners and system integrators for enterprise-scale AI adoption,” the analyst said.

At current levels, given attractive multiples and an improving demand environment, investors should consider gradually accumulating select IT names and increasing allocation on every 5-7% decline in stock prices, Nayak further said, adding that the recent weakness is close to the bottom.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)