Infosys and other Indian IT heavyweights surged on Friday. The Nifty IT index climbed over 3% during the session.
Nvidia's strong quarterly earnings and optimistic revenue forecast triggered the rally. These results reassured global investors about the continued boom in artificial intelligence spending.
The market gains occurred despite CLSA downgrading its rating on Infosys to 'Hold'. The brokerage cited a long gestation period for potential financial upsides from AI technology.
Investor optimism sparked by Nvidia currently outweighs brokerage concerns regarding the near-term financial impact on Indian IT service providers.