IT Stocks Rise: Coforge, Mphasis And Other Shares Rise Up To 4% - What's Fuelling The Rise?

The shares of Information Technology companies were trading relatively higher by up to 4% on Tuesday, pushing the Nifty IT index up by over 1.5% to emerge as a sectoral gainer.

This is the fifth consecutive session that the Nifty index has extended gains for.

What Is Fuelling The Rise?

This rise is fuelled by the fact that positive cues have been tracked from the trade negotiations between US and China, with both largecap and midcap IT stocks observing significant interest from investors.

Investors are hoping for trade tensions to ease between the two countries, amid ongoing talks.

Additionally, top officials from both the countries are set to meet in London for a second day to eke out their differences while dismissing the trade war deadlock.  

The United States President Donald Trump has also said, "We're doing well with China. China's not easy."

However, his response on being asked if he will be lifting some export controls was vague.

Who Were The Top Gainers?

Since India's IT companies derive a major portion of their revenue from the US businesses, the stocks are seeing a rise on the bourses.

"The "NIFTY IT" index is witnessing a breakout from a falling channel and has formed a modified inverse Head & Shoulders pattern on the daily chart, with the neckline placed at 38400. A breakout above this level would confirm a short-term bottom formation. The overall structure remains bullish, with upside potential towards 40000 and 42000. support is seen at 37350. CMP: 38000. Positive stocks are TECHM, PERSISTENT, COFORGE, MPHASIS AND LTIM," said Nilesh Jain, Head vice president of technical and derivatives research at Centrum Broking Ltd.

Here are the top gainers:

Persistent: The shares of Persistent, were top gainers trading at Rs 6,038.50 apiece, registering a 4.28% rise as compared to its previous close on the NSE.

Coforge: Coforge shares were trading at Rs 1,854 per scrip, rising 3.34% on the NSE as compared to its previous close.

OFSS: The shares of OFSS were trading at Rs 9,440 apiece, rising 3.04% on the NSE as compared to its previous close.

Tech Mahindra: The shares of Tech Mahindra were trading at Rs 1,626.60 higher by 3.01% on the NSE.

MPhasis: MPhasis shares were trading at Rs 2,669.40 per share higher by 2.55% on the NSE as compared to its previous close.

Also Read: Why Has Maharashtra FDA Ordered Shutdown Of Blinkit Dark Store In Pune?