IT Stocks Rally: NIFTY IT Jumps 3% as TCS Gains 3.6%, Infosys 2.8% on Salesforce Boost

IT stocks staged a sharp rally on August 28, 2026, pushing the NIFTY IT index up around 3%. TCS shares gained 3.6%, while Infosys rose 2.8% as strong global technology cues lifted investor sentiment. The move came after strong results from Salesforce and Nvidia, which renewed optimism around software, AI and enterprise technology spending. The question now is whether this momentum can turn into a sustained recovery for Indian IT stocks.

NIFTY IT Jumps 3% as TCS and Infosys Lead the Rally

The NIFTY IT index jumped 3% on August 28, 2026, reaching an intraday high of 31,213. Investors returned to technology stocks after strong earnings from global tech companies improved sentiment across the sector.

All 10 NIFTY IT constituents traded higher. LTIMindtree led the gains with a 4.8% rise. TCS gained 3.6%, HCLTech rose 3.5%, Coforge added 3.3%, Tech Mahindra gained 3.1%, and Infosys climbed 2.8%. Wipro also advanced 2.1%.

The gains were not limited to the large-cap names. Sagility rose 4.4%, Sonata Software gained 3.5%, and Cyient advanced 1.7%. The broad move points to stronger buying interest across the IT sector rather than a rally concentrated in only a few stocks.

Why are IT Stocks Rallying Today?

Salesforce earnings strengthen hopes for technology spending

The main trigger came from global software markets. Salesforce reported its second-quarter FY2027 results on August 26, 2026. Revenue rose 11% year over year to about $11.3 billion, while current remaining performance obligations increased 14% to $33.5 billion.

Salesforce also raised its FY2027 revenue guidance to $46.1 billion to $46.4 billion, implying 11% to 12% growth. Its Agentforce and Data 360 annual recurring revenue reached nearly $3.9 billion, up more than 210% from a year earlier.

These numbers gave investors more confidence in demand for cloud, software and AI services. That matters for Indian IT companies because many of their major clients operate in the US and Europe and spend heavily on technology and digital transformation.

How Is Nvidia Supporting the IT Sector Rally?

Nvidia provided another boost to technology sentiment. On August 26, 2026, the chipmaker reported Q2 FY2027 revenue of $96.2 billion, up 106% year over year. Data Center revenue rose 117% to $89 billion. Nvidia also said demand for AI infrastructure was accelerating.

The results strengthened the wider AI investment story. Indian IT firms can benefit as enterprises increase spending on AI implementation, cloud migration, data platforms and automation.

That said, Nvidia’s results do not directly guarantee higher revenue for TCS or Infosys. The link is mainly through global technology spending and investor expectations for the sector.

TCS Stock Details, Forecast and Technical View

TCS stock was still well below its recent 52-week high before Friday’s rally. On August 27, TCS closed at ₹2,252, compared with its 52-week high of ₹3,336.70.

Meyka’s available TCS.NS model page shows a 12-month forecast of ₹3,942.82 and an RSI reading of 64.66 in its latest indexed data. Its August stock-picks page also lists TCS.NS with a Meyka score of 78.67.

Meyka’s earlier analysis also pointed to AI demand and major deals as possible long-term positives. In May, it cited a ₹3,656 12-month target.

A recent Reuters report provides another business catalyst. TCS agreed to acquire Porsche’s IT unit MHP as part of a wider €1.25 billion five-year partnership, with AI implementation among the areas of focus.

For investors, an AI stock analysis tool can help bring technical indicators, forecasts and fundamentals together. These signals still need to be assessed alongside company results and market conditions.

Infosys Stock Outlook: What Does the Data Show?

Infosys also joined the rally after falling 1.26% to ₹1,106.65 on August 27. The stock was still about 36% below its 52-week high of ₹1,727.85.

Meyka’s latest indexed Infosys NSE data gives the stock a B score, with an AI forecast of ₹1,768.11 over 12 months. Its technical reading showed an RSI of 59.37, which points to a relatively neutral position rather than an extremely overbought level.

The figures suggest room for a recovery, but Infosys still needs stronger earnings growth and steady client spending to support a lasting uptrend.

Can the IT Stocks Rally Continue?

The near-term direction will depend on whether global technology spending continues to improve. Strong Salesforce guidance, Nvidia’s AI demand and fresh enterprise deals have helped the bullish case.

Investors should still watch several risks:

• Slower US technology budgets could affect new deal growth.
• AI could disrupt some traditional IT-service work.
• Currency movements can affect reported earnings.
• Sharp gains could lead to profit-taking and higher volatility.

For now, the sector’s fundamentals matter more than a single strong trading session.

Conclusion

The latest IT stocks rally shows how quickly global technology earnings can influence Indian IT shares. TCS and Infosys gained strongly as Salesforce and Nvidia improved confidence in software, cloud and AI spending. The rally still needs follow-through. Investors should watch deal wins, client budgets, margins and earnings growth before viewing the move as the start of a lasting IT sector recovery.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.