Surge in Indian IT Stocks Driven by AI Developments

On Friday, Indian IT stocks experienced a significant surge, driven by positive developments in artificial intelligence. Major companies like Wipro and Infosys saw substantial gains, with Wipro's expanded partnership with ServiceNow enhancing investor sentiment. The Nifty IT index rose over 2 percent, indicating renewed confidence in the sector's ability to adapt to AI advancements. This rally follows a challenging period for IT stocks, which faced pressure earlier this year due to fears of AI disrupting traditional business models. The optimism extended across the tech sector, with several companies recording notable gains, reflecting a shift in investor outlook.

By Narendra Chaudhary May 29, 2026, 15:27 IST

Strong Performance of IT Stocks Amid AI Innovations

On Friday, Indian IT stocks experienced significant buying activity, with major players like Infosys, Wipro, and Tata Consultancy Services (TCS) witnessing notable increases, even as broader market indices showed only slight gains. The Nifty IT index surged by over 2 percent, fueled by positive investor reactions to new advancements in artificial intelligence.

Wipro emerged as a key performer, announcing an expanded partnership with ServiceNow aimed at enhancing the adoption of agentic AI across various enterprise operations. This news not only boosted Wipro's stock but also positively influenced the entire technology sector.

The collaboration will focus on implementing agentic AI workflows across multiple business areas, including IT services, human resources, procurement, and cybersecurity. Wipro plans to integrate its AI solutions under Wipro Intelligence with the ServiceNow AI Platform, which is expected to streamline operations and improve efficiency across systems.

According to Wipro, this integration will facilitate better automation and coordination of work, thereby enhancing accountability and operational governance. The company emphasized that reducing manual coordination will lead to faster turnaround times.

ServiceNow's executives underscored the significance of enterprise-ready AI systems, with Amit Zavery, President and COO, stating, “AI isn’t new to enterprises, but connected, governed, and outcome-driven AI is. This partnership makes that a reality.” He added that when agentic AI operates within secure workflows, it can yield tangible results.

Malay Joshi, CEO of Wipro’s Americas 1 Strategic Market Unit, acknowledged the challenges businesses face in adopting AI technologies. He noted that the partnership with ServiceNow aims to address these challenges through a consulting-led, AI-driven strategy that aligns business needs with industry-specific AI solutions.

IT Stocks Recover After Earlier AI-Driven Declines

Wipro's shares rose over 2 percent during intraday trading, having previously jumped more than 4 percent in the morning session, following a significant increase in the company's American Depositary Receipts (ADRs) overnight. This rebound in IT stocks comes after a challenging period for the sector, which faced pressure due to rapid advancements in AI tools.

Earlier this year, concerns escalated among investors when AI startup Anthropic launched new plug-ins for its Claude Cowork agent, capable of automating tasks in various sectors, including legal services and marketing. This development was referred to as the ‘SaaSpocalypse’ by Jeffrey Favuzza from Jefferies, highlighting fears that AI could disrupt traditional outsourcing and software business models, negatively impacting IT stocks globally, including in India.

Broader Tech Sector Rally

The positive sentiment on Friday extended beyond Wipro, with Infosys shares climbing nearly 4 percent, making it one of the top gainers on both the Sensex and Nifty IT index. Other companies like Coforge, LTIMindtree, and Persistent Systems also saw gains of around 3 percent each.

Additionally, shares of Mphasis, HCLTech, and TCS increased by approximately 2 percent, while Tech Mahindra and Oracle Financial Services Software (OFSS) rose over 1 percent. This widespread rally contributed to a more than 2.5 percent rise in the Nifty IT index during the morning session, reflecting renewed investor confidence in the sector's capacity to adapt to AI-driven opportunities.