Why IT Stocks Like Infosys, TCS & Wipro Are Rising | Key Reasons Explained

Infosys and other big Indian IT stocks are back in the limelight. Over the last few trading sessions, names like Infosys, Wipro, and TCS have moved up together, and the Nifty IT index has hit a multi‑month high. A big part of this buzz started with a sharp move in Infosys’ US‑listed ADR (American Depository Receipt, a US‑traded version of the share), and then got support from better global signals, like softer US inflation and expectations of interest rate cuts.​

In this blog, you will see which IT stocks are leading the rally, why Infosys is at the centre of it, what exactly happened with its ADR, and the other major reasons helping IT stocks right now, like value buying, foreign investor flows, and the weak rupee.

Top IT Gainers: Who Moved and How Much?

Here’s a quick snapshot of how key IT names have done today and over the last five days (data as of 22 December 2025):​

• Nifty IT index: Up about 2.1% today and 3.8% in the last five days, showing that this is a sector-wide move, not just one stock acting alone.​
• Infosys: Up roughly 2.9% today and around 6.1% over the last five days, making it one of the main leaders of this current IT rally.​
• Wipro: Up about 3.1% today and 4.7% in the last five days, riding the same positive wave that started after the sharp move in Infosys’ ADR.​
• TCS: Up nearly 1.3% today and 3.6% in five days, participating in the uptrend even though its move is a bit more muted compared to Infosys and Wipro.​

Source: Google Finance

Overall, the move is broad, with Infosys and Wipro leading the pack.

Why IT stocks like Infosys and Wipro are rising?

Two things seem to be driving the move: (1) a sharp overnight jump in Infosys’ US‑listed ADR, and (2) supportive global cues like softer US inflation and rate‑cut hopes. Now let’s break down the drivers one by one.

Key Triggers Behind the Move

The surge in ADR (American Depository Receipt)

An ADR is like a “US wrapper” for an Indian share, it lets US investors buy something that represents Infosys on a US exchange, instead of directly buying the stock in India. When this US‑traded version moves sharply at night for us, traders in India often react the next morning.​

Infosys’ ADR hit a 52‑week high after a sudden rush of buying from traders who wanted to exit their ‘price will fall’ bets, pushing it up sharply (nearly 40% at one point) before it cooled off. The move was so fast that trading was briefly paused due to volatility controls.

Infosys later clarified that there was no major new event behind the ADR spike that needed disclosure under SEBI’s LODR rules (disclosure rules for listed companies). The company said the note was to stay transparent and avoid rumours.​

Softer US inflation and hopes of Fed rate cuts

Recent data showed that inflation in the US has cooled more than before, and this made investors believe that the US Federal Reserve (the US central bank) may cut interest rates sooner or more than previously expected.​

Lower interest rates generally support “growth” sectors like IT because:

• US clients may feel more confident about spending on technology and digital projects.​
• Future profits from IT companies, which often come many years down the line, are valued higher when rates are lower (because the discounting effect reduces).​

So, softer inflation plus rate‑cut hopes improved sentiment for export‑oriented IT stocks that earn a big chunk of their revenue in dollars from US clients.​

Value buying: stocks looking cheaper after a fall

Over 2025 so far, the sector has not exactly been a hero. Infosys, Wipro, and TCS had each fallen meaningfully from their earlier levels, roughly around 10.3% down for Infosys, 9.2% for Wipro, and 19.2% for TCS on a year‑to‑date basis. This means investors had already cut their expectations quite a bit.​

After months of correction, some investors may have felt large IT stocks looked cheaper (better valuations: price looks reasonable versus profits), so they started buying for a bounce.

It is like your favourite dal or rice brand going on a long discount at the supermarket: the product is the same, but the lower price suddenly makes it more attractive. So value‑minded investors started buying IT stocks again, hoping that the worst of the bad news was already priced in and that even small positive triggers, like the ADR surge, could lead to a bounce.​

Depreciating rupee: weaker INR supports IT earnings

The rupee has recently weakened against the US dollar, even touching around 91 per dollar in some reported quotes. For most IT companies, this is actually helpful:​

• They earn a large part of their revenue in US dollars from overseas clients.
• When those dollars are converted back into rupees, a weaker rupee means they get more rupees for the same amount of dollars.​

Assume an IT company as someone earning in dollars and spending in rupees. If 1 dollar used to fetch ₹80 and now it brings ₹91, that person suddenly has more rupees to spend or save, even though the work done is exactly the same. This currency tailwind is another reason why investors are more comfortable buying IT stocks during this period.​

FII flows: foreign money coming back to India

FII (Foreign Institutional Investor) flows refer to investments made by big foreign funds, like global mutual funds, pension funds, or hedge funds, into Indian stocks. When these investors turn buyers, it often supports stock prices, especially in large, liquid sectors like IT.​

Recent market coverage highlighted that foreign money has been flowing again into Indian equities, partly because India still looks like a relatively strong growth story compared to many other countries.

Final Take

This move looks driven by the ADR shock plus supportive global cues like rate‑cut hopes, foreign inflows and a weak rupee, rather than a fresh business update.

For investors, this means two things can be true at the same time:

• The short‑term price action can stay strong as long as global sentiment, foreign flows, and currency support continue.​
• But the long‑term returns will still depend on how fast IT demand grows, how well these companies execute, and whether earnings actually deliver what today’s prices are starting to expect.​

A balanced way to look at it is this: treat the recent move as a reminder to re‑check your IT allocation rather than a signal to blindly chase prices. If you believe in the long‑term digital and outsourcing story and you are comfortable with currency swings and global demand risks, IT can still be part of a diversified portfolio. If you are more conservative, you may want to watch how earnings and order books evolve in the next few quarters before taking big calls.​

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