IT stocks in focus today: Domestic technology stocks came under the bulls’ radar in Thursday’s session, May 29, after being beaten down in the last couple of trading sessions. The selling in IT stocks had also exerted pressure on the front-line indices.
The renewed interest lifted all stocks in the Nifty IT pack into the green, with LTIMindtree, Persistent Systems, Infosys, and Wipro emerging as the top gainers, jumping up to 3.5% in intraday trade.
Consequently, the Nifty IT index rose nearly 2% to the day’s high of 38,121 and was set to end May with a gain of 5.4%, snapping its four-month losing streak.
Tech rally fueled by U.S. court ruling against tariffs
The strength in tech stocks came as investors cheered a U.S. federal court’s decision to block President Trump’s proposed “Liberation Day” tariffs.
Although the White House has appealed the decision, the ruling raised hopes that Trump may scale back from imposing the highest tariff levels he had threatened, lifting global risk sentiment.
The ruling halts most of Trump’s “Liberation Day” tariffs, including a 10% across-the-board tariff and higher rates on countries like China, though tariffs imposed under other laws, such as Section 232 on steel and aluminum, remain unaffected.
Global financial markets were hit by a sweeping selloff after Trump’s bid to remake the world trading order proved more aggressive than expected.
Trump’s tariff blitz announced April 2, spooked investors who caught on to a ‘Sell America’ trade as they remain wary of how the levies will impact growth. Trump’s pause on the tariffs and negotiations with countries have since helped stabilise the global markets.
The recent threat to impose tariffs on the EU, which was later postponed, has once again resurfaced trade tensions on the global stage.
Meanwhile, investors kept a close eye on US Senate debates over Trump’s sweeping tax and spending bill, which is likely to undergo significant revisions in the upper chamber.
On the monetary policy front, the latest FOMC minutes indicated that officials are adopting a cautious, wait-and-see approach, aiming to assess the economic fallout from recent government actions and tariff developments. Policymakers also noted that risks of both rising inflation and unemployment had increased.
Tariff ruling a relief, but markets remain range-bound, says expert
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that tariff-related developments involving U.S. President Donald Trump continue to influence market sentiment. He highlighted that the recent U.S. federal court decision striking down reciprocal tariffs sends a strong signal that such unilateral economic decisions cannot go unchecked.
This marks the second major setback for Trump’s tariff plans, following earlier pressure from the bond market that led to a temporary pause. From a market standpoint, Vijayakumar sees this as a positive move.
He added that the Nifty is currently consolidating within a narrow 500-point range of 24,500 to 25,000, and a breakout or breakdown in the near term appears unlikely. Most of the market action, he observed, is concentrated in the mid- and small-cap segments, driven by earnings results.
However, he cautioned investors against chasing these stocks blindly, stressing that quality and valuation discipline remain crucial for outperformance in the broader market.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
