Archive · 31 Jul 2026
Indian IT Stocks Rise as AI‑Semiconductor Rally Wanes
In July 2026, Indian IT stocks went up while the semiconductor market, which had been doing very well, slowed down.
The Nifty IT index fell 19% in 2026, but IT companies still did better than other sectors because they look cheaper and had good first‑quarter results.
Investors who had been buying semiconductor stocks started to shift money into IT companies instead.
Even though the semiconductor market had a sharp drop, fund managers still bought more semiconductor shares, showing the theme is still strong.
In South Korea and Taiwan, a lot of money from both foreign and local investors flowed into the markets, helping the overall market stay steady.
The change in where investors put their money is called a rotation, and it can help economies like India grow.
Indian IT stocks rebounded in July 2026 as the semiconductor rally slowed.
The Philadelphia Stock Exchange Semiconductor Index rose 60% in 2026, while Nifty IT fell 19% the same year.
Foreign portfolio investment in technology fell to an all‑time low of 5.6% in the June quarter.
ICICI Securities said the rotation could benefit growth‑oriented economies like India.
Global semiconductor fund inflows accelerated during the week, indicating the AI theme remains attractive.
- Who
- Indian IT companies, investors, ICICI Securities, Elara Securities
- What
- Rebound of Indian IT stocks amid a slowdown in the AI‑semiconductor rally
- When
- July 2026
- Where
- India, global markets, South Korea, Taiwan
- Why
- Capital rotation from AI‑driven semiconductor gains to growth‑oriented IT stocks; valuation‑led correction rather than panic selling
- Nifty IT 2026 Return
- -19%
- Semiconductor Index 2026 Return
- +60%
- FPI Tech Allocation (June 2026)
- 5.6%
- Global Tech Fund Inflows
- $15.7bn
- Taiwan Domestic Inflows
- $4.8bn