Infosys, TCS gain up to 4%, Nifty IT jumps over 2.6% as strong AI demand boosts Snowflake earnings,... - Moneycontrol.com

Published 1 June 2026 · finance

Indian IT stocks bucked weakness across most sectors today, making Nifty IT the best-performing sectoral index by a wide margin, while benchmark indices and most

Indian IT stocks bucked weakness across most sectors today, making Nifty IT the best-performing sectoral index by a wide margin, while benchmark indices and most sector gauges remained subdued. Nifty IT rose 3.5% intraday, ended up 2.66% Infosys, Tech Mahindra, and Persistent Systems among top gainers Global AI demand and Snowflake's outlook boosted Indian IT stocks Did our AI summary help? IT TM4 TCS IT NSE/BSE Select NSE LIVE BSE LIVE Day High Day Low Volume (NSE) More TM4 NSE/BSE Select NSE LIVE BSE LIVE Day High Day Low Volume (NSE) More TCS NSE/BSE Select NSE LIVE BSE LIVE Day High Day Low Volume (NSE) More × Nifty IT jumped as much as 3.5 percent intraday on Monday, with largecap shares such as Infosys and midcap stocks including Persistent Systems surging up to 5 percent, as a global rally in artificial intelligence-linked shares spilled over to Indian markets after strong earnings and AI demand outlook from US-based Snowflake. Indian IT stocks bucked weakness across most sectors, with Nifty IT closing up 2.66 percent.

The IT index was the best-performing sectoral index by a wide margin as investors cheered fresh signs that the global AI spending boom is translating into stronger software demand, lifting technology shares worldwide. Benchmark indices and most sector gauges fell for the day. The gains were broad-based across both large-cap and mid-cap IT stocks. Infosys rose 3.6 percent to close at Rs 1,202.5. Tech Mahindra climbed 4 percent, and emerged as the top gainer on the Nifty 50. TCS gained 1.7 percent, HCL Technologies added 1 percent and Wipro rose 1.1 percent. Five major IT stocks featured among the top gainers on the benchmark index. The rally extended to the broader market as well. Persistent Systems jumped 3.4 percent, among the top Nifty Midcap 100 gainers; Coforge rose 2.5 percent and KPIT Technologies advanced over 2 percent. Three IT companies featured among the top five gainers on the Nifty Midcap 100 index. The sharp outperformance came even as the broader market fell sharply in the late session. The Nifty 50 declined 0.7 percent at close, while the Nifty Midcap 100 index was down over 1.4 percent.

Most major sectoral indices, including auto, FMCG, private banks, realty and consumer durables, ended in the red. The buying interest in Indian IT stocks mirrored strength in global software and technology shares, as investors cheered fresh evidence that artificial intelligence spending is translating into stronger demand for enterprise software and cloud services. One of the biggest triggers came from US-based cloud data platform company Snowflake, whose shares surged nearly 50 percent over four trading sessions after the company raised its annual revenue forecast and announced a $6 billion multi-year agreement to use Amazon's cloud services and AI chips. Snowflake said demand for both its core data products and newer AI-focused offerings continued to strengthen, with customers using its AI-assisted coding tools doubling from the previous quarter. The company now expects product revenue to grow about 31 percent in fiscal 2027, ahead of analyst expectations. The upbeat outlook fuelled a broader rally in global software stocks, with investors viewing Snowflake as a key beneficiary of rising enterprise AI spending. Analysts at Argus Research described the company as a "picks-and-shovels" play on generative AI, arguing that businesses increasingly need to organise and harmonise large datasets before they can fully deploy AI applications.