What Is Suddenly Pulling Money Back Into Beaten Down IT Stocks?

Indian IT stocks have jumped hard over two days. The Nifty IT index has climbed about 13 percent in a month, its best run in two years, and every one of its ten stocks traded higher. This comes after a rough patch, because the sector was the worst performer of 2026, down around 22 percent for the year.

Several reasons are pushing the rally. Coforge beat expectations for the June quarter, giving the recovery its first real earnings support after weeks of buying driven only by cheap prices. A reversal in the global AI trade helped too, as money moved out of US tech into steadier names after a sharp selloff there. Brokerages also turned less negative.

But a word of caution helps here. Some of these hopes, like a friendly US Fed move, are not yet confirmed, and the deeper problems facing large IT firms have not really changed. So this may be a bounce from very low levels rather than a full turnaround. Watch the coming results before reading too much into two green days.