Indian IT stocks were in rally mode on June 25, as market sentiment turned positive following US Federal Reserve Chair Jerome Powell’s remarks that were seen as supportive of monetary easing. Powell’s testimony before the US Congressional Committee on Financial Services strengthened expectations that the Fed could begin cutting rates as early as July or September 2025.

This optimism lifted the Nifty IT index nearly 1.7% in afternoon trade to hover around 39,065, making it one of the top sectoral performers for the day. The index also extended gains for a second consecutive session, buoyed by hopes that lower US interest rates will drive demand for technology services and solutions from Indian firms.

Top gainers included Mphasis, which surged nearly 3% to Rs 2,753, followed by Infosys, up over 2% at Rs 1,618. LTIMindtree and Tech Mahindra also advanced around 2% each, while Coforge, HCL Tech, and TCS posted gains exceeding 1%. Even Persistent Systems edged higher, trading with modest gains.

Powell reassured lawmakers that while inflation remains slightly above the Fed’s 2% goal, the economy is on firm footing. “The unemployment rate remains low, and the labor market is at or near maximum employment. Inflation has come down a great deal but has been running somewhat above our 2 percent longer-run objective,” Powell said. He added that if inflation pressures remain in check, rate cuts could come “sooner than later.”

His remarks also lifted Wall Street, with the tech-heavy Nasdaq hitting record highs. However, Powell’s comments drew sharp criticism from former US President Donald Trump, who blasted Powell as a “very dumb, hardheaded person” for not cutting rates sooner. Trump argued that the US should have already slashed rates by 2-3 percentage points to match Europe’s monetary policy moves and save the economy billions of dollars annually.