TCS Leads 5% Surge as AI Spending Slowdown Boosts Indian IT Stocks

TCS shares rose about 5% in early trade, leading a rally among major Indian IT firms as the Nifty IT index also climbed 5%, driven by market reaction to reports of a slowdown in AI spending.

Infosys and Wipro saw similar gains of roughly 4% to 5%, with trading volumes higher than average, indicating strong investor appetite for traditional IT services amid uncertainty over AI‑related capital allocation.

Analysts at Business Today noted that the AI slowdown narrative eased concerns about inflated valuations, prompting fund managers to rotate into established software and outsourcing companies that promise steady cash flows.

Investors are expected to monitor upcoming quarterly results for signs of revenue growth, as the short‑term rally could set the tone for the broader Indian tech sector’s performance in the coming weeks.