IT Stocks Surge 2.6% as FIIs Return After March Selling Spree

FII Money Returns to Indian IT: 2.6% Single-Day Surge Signals Trend Shift The Nifty IT Index delivered its strongest single-day performance in weeks, surging 2.60% as Foreign Institutional Investors (FIIs) returned as net buyers in early April after their aggressive selling spree throughout March. This sharp reversal in foreign investor sentiment has provided immediate relief to India's technology sector, which had been under pressure from sustained FII outflows over the past month. The timing of this FII re-entry appears strategically positioned. After pulling out ₹21,612 crores from Indian equities in March – the highest monthly outflow since October 2021 – foreign investors are now showing renewed confidence in India's IT export champions. This shift comes as global technology valuations have stabilized and concerns over Federal Reserve policy tightening have moderated. Large-Cap IT Leaders Drive the Rally NSE: TCS led the charge with a 3.2% gain, adding ₹38,400 crores to its market capitalization in a single session. The stock's strong performance reflects its resilience in maintaining client relationships and pricing power despite global economic headwinds. NSE: INFY followed closely with a 2.8% rise, as investors appreciated its consistent deal wins and digital transformation revenues. NSE: WIPRO emerged as the day's standout performer, jumping 4.1% on the back of renewed institutional interest. The stock has been particularly sensitive to FII flows given its higher foreign institutional holding percentage of 73.2%. NSE: HCLTECH and NSE: TECHM posted gains of 2.4% and 2.7% respectively, while NSE: LTI added 3.5% as mid-cap IT stocks outperformed their large-cap peers. The sector's performance significantly outpaced the broader Nifty 50, which gained only 0.8% during the same session. This divergence highlights how FII money specifically targeted IT stocks with higher foreign institutional exposure. Stocks with FairStock Scores above 70 in the IT space sa...