Indian IT stocks experienced a sharp rally on Monday following the US-China trade truce, which saw both countries agreeing to suspend tariffs on select goods for 90 days, starting May 14. This development, stemming from high-level talks in Geneva, boosted sentiment across global markets, particularly benefiting export-oriented sectors like information technology.
The Nifty IT index jumped over 6%, emerging as the top sectoral gainer on the NSE. Key players in the IT sector led the rally, with Oracle Financial Services Software (OFSS) surging by nearly 9%, followed by Coforge and Persistent Systems, both rising by over 8%. Infosys, a blue-chip heavyweight, gained close to 8%, while LTIMindtree advanced just over 7%. Other major IT stocks like HCLTech, Wipro, Tech Mahindra, Mphasis, and TCS also posted strong gains, ranging from 4.8% to 6.3%.
As of 2:54 pm, the Sensex was up by 2,815.41 points, reaching 82,269.88, and the Nifty50 surged by 886.40 points, reaching 24,894.65.
US-China Trade Truce Details
Under the trade agreement, the US will reduce tariffs on Chinese goods from 145% to 30%, while China will lower tariffs on American imports from 125% to 10%. Both nations agreed to retain a 10% base tariff rate and suspend 24 percentage points of additional duties. Additionally, China committed to phasing out non-tariff barriers imposed since April 2025.
US Treasury Secretary Scott Bessent noted that both countries share a desire to avoid decoupling. This trade détente, accompanied by ongoing discussions led by Chinese Vice Premier He Lifeng and US Trade Representative Jamieson Greer, marks a significant easing of tensions that had been unsettling global markets.
Investors welcomed this breakthrough as a sign of eased geopolitical risks and a potential boost to global trade, especially benefiting Indian IT firms, which are well-positioned to gain from renewed business confidence in their largest export market.
