Indian IT stocks rallied Tuesday, bucking a global tech slump as the Nifty IT index surged 3.3% led by Coforge's 10.2% jump. TCS, MphasiS, Tech Mahindra and Persistent Systems rose 3.2%-4.5% while the Nifty 50 ended flat. This contrasted sharply with South Korea's Kospi plunging nearly 11% and Taiwan falling 4.7% as chipmakers sold off globally.

The rally reflects unwinding of overheated AI trades and better-than-feared Q1 earnings. Coforge reported revenue up 49% and profits up 86% year-on-year. The Nifty IT index has gained 11.3% over the past month versus a 0.3% decline in the broader Nifty, though the sector remains down over 20% in 2026.

Analysts cite valuation comfort with IT trading 35% below its five-year median. Sham Chandak of Elios Financial Services sees a "lucrative value buying opportunity," while Sagar Shetty of Stox Box notes improving demand visibility and healthy large-deal momentum. Harsh Thakkar of Samco Securities recommends staggered buying in quality midcap IT names.