India's IT stocks surge on Nvidia's robust earnings outlook

India's Nifty IT index climbed 3.5 percent, driven by gains across major software exporters including TCS, Infosys and Coforge, as investors took heart from the chipmaker's performance. The rally reflected growing confidence that corporations would continue to invest heavily in AI infrastructure and applications despite earlier concerns about moderating spending growth. Nvidia's results provided reassurance to markets that enterprise demand for AI services remained robust, benefiting Indian IT services firms that derive significant revenue from technology modernization and AI deployment projects. Shares of TCS, Infosys and other mid-cap software firms extended their gains on the back of the positive sentiment, with investors betting on sustained demand for consulting and implementation services from global clients. Yet several market analysts cautioned that the recent momentum in IT stocks should be viewed with some circumspection. Industry observers noted that while Nvidia's earnings painted an optimistic near-term picture, questions persisted about the scalability and profitability of AI investments for end-user companies, and whether the current spending trajectory could be maintained over the long term. The sector's valuation multiples have expanded sharply in recent months, some analysts noted, warranting a measured approach to further accumulation despite the positive signals from global technology leaders.