The Nifty IT index climbed nearly one percent on May 29, breaking a two-day losing streak.
This surge came after US chipmaker Nvidia reported strong Q1 results. At the same time, a US trade court blocked President Trump’s planned tariffs. This double boost helped IT stocks rebound sharply in early trading.
So, what does this mean for the average investor or IT professional? Simply put, relief. Many Indian IT companies earn most of their revenue from the US. When tariff fears hit, stocks dropped, sparking worries of a slowdown. Now, with tariffs possibly blocked, the sector looks healthier and more confident.
The ruling came from the Manhattan-based Court of International Trade. The court said Trump overstepped his power by imposing wide-reaching tariffs.
It reminded everyone that only Congress can regulate trade under the US Constitution. A three-judge panel noted, “The court does not pass upon the wisdom or likely effectiveness of the President’s use of tariffs…but it is impermissible because federal law does not allow it.”
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The Trump administration plans to appeal, so this story isn’t over. But for now, the verdict helped calm markets.
Meanwhile, Nvidia’s Q1 results stole the show. Led by CEO Jensen Huang, the company reported a 69% jump in revenue to $44.1 billion.
Net income also surged 26% to $18.78 billion, despite tougher export rules for selling advanced chips to China. Nvidia took a $4.5 billion charge related to these restrictions but still posted impressive gains.
Wall Street futures responded fast. The S&P 500 futures rose 1.5%, and Nasdaq futures jumped nearly 2%. Back home, Indian IT stocks followed suit.
LTI Mindtree led the charge with nearly a 3% gain, trading at Rs 5,229. Persistent Systems and Coforge were up nearly 2%. Infosys gained 1.5%, while Mphasis and Tech Mahindra rose around 1%. Wipro and TCS also saw modest gains.
In simple terms: the Nifty IT sector just got a much-needed shot in the arm. Between the court ruling and Nvidia’s strong numbers, investors are breathing easier. The market’s mood flipped from cautious to optimistic in one trading session.
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