In June 2025, companies in the technology sector have shown tremendous growth in the Indian stock market. In Tuesday’s trading, the Nifty IT index was up about 2 percent and was seen trading near the highest level of the day.
Every IT stock remained in the green. The biggest jump was seen in Coforge, followed by companies like Persistent Systems, Tech Mahindra, and Oracle Financial Services.
How much jump in which stock?
Coforge: 5.6 percent jump, stock reached Rs 1,895.
Persistent Systems: 3.2 percent rise, stock reached Rs 5,980.
Tech Mahindra: 2.5 percent rise, stock reached Rs 1,619.
Performance of Nifty IT in 2025
4.7 percent rise in last 5 trading sessions.
11.65 percent rise in the index in the last one year.
However, since the beginning of 2025, the index is down about 10 per cent due to Trump tariffs and a weak dollar.
Three major reasons for the rise
1. US-China trade talks stirred up again
Trade talks between the US and China have resumed in London. Efforts are being made to reduce the tariff tensions that have been going on for months between the two countries. Recently, Trump and Xi Jinping’s phone conversation has raised expectations. Also, the 90-day tariff-suspension deal in Geneva gave a positive signal to the market.
2. Stability of the US economy and dollar
Amid uncertainty over the FY26 deal pipeline, investors have been relieved by the improvement in US job data and stability of the dollar. Buying by FIIs (Foreign Institutional Investors) is also contributing to this.
3. FII’s hold is strong
According to a report by JM Financial, the IT sector is one of the five sectors in which FIIs invest the most in India. The IT sector has 8.2 percent FII holding. There was less selling in the IT sector in May, FII maintained its share as compared to April.
Market’s eyes on tech stocks
Global positive signals, US-China talks and stable interest from foreign investors have strengthened tech stocks. If there is further relief regarding Trump tariffs and the dollar remains stable, the IT sector may see further growth in the coming days.
