Persistent Systems and LTIMindtree Drive Gains as Nifty IT Sector Recovers After DeepSeek Selloff

The Indian stock market witnessed a significant rebound on Wednesday, primarily driven by the strong performance of the Nifty IT sector. This recovery came after a previous turbulent session, where technology stocks faced a decline due to concerns stemming from the selloff related to the Chinese AI application DeepSeek.

Leading Players in the Nifty IT Sector

Persistent Systems Ltd. and LTIMindtree Ltd. emerged as the top performers, witnessing notable increases of 5.91% and 3.70%, respectively. Persistent Systems' shares rose to Rs 6,259, while LTIMindtree traded at Rs 5,875 per share.

In addition to these two leaders, other prominent companies in the Nifty IT space also reported gains. HCL Technologies Ltd. saw a rise of 1.82%, trading at Rs 1,724, while Infosys Ltd. climbed 2.29% to Rs 1,871. Mphasis Ltd. recorded a notable increase of 3.03%, reaching Rs 2,971, and Tata Consultancy Services Ltd. also improved, seeing a gain of 1.67%.

Additionally, Wipro Ltd. and Tech Mahindra Ltd. joined the gaining party, with their stock prices increasing by 2.04% and 1.59%, respectively, to Rs 309.80 and Rs 1,674.50 per share.

Broader Market Sentiment and Global Influences

The positive sentiment across the broader market was bolstered by a recovery in US stocks observed the day before. Stocks related to AI, such as Nvidia, recovered from earlier losses, contributing to a more optimistic outlook in the global markets. The tech-heavy Nasdaq index experienced a rise of over 2%, and this positive momentum was reflected in the Indian markets.

Despite the recent fluctuations, the early trade on Wednesday showcased a solid resurgence in the Nifty IT sector, with many leading companies making impressive gains, indicating a possible stabilizing trend.

Notably, DeepSeek is a free Chinese AI chatbot reminiscent of ChatGPT, which has sparked discussions within the tech community as companies like Nvidia see potential in it, while financial institutions such as Citi and UBS remain cautious.

IT, Stocks, Recovery