INDIA STOCKS-IT stocks lead gains in India's benchmark indexes

Updates for markets close

By Bharath Rajeswaran and Indranil Sarkar

Jan 23 (Reuters) - India's benchmark indexes closed higher on Thursday, led by IT stocks on optimism over the rise in artificial intelligence (AI) spending in the U.S., while worries over earnings moderation and U.S. tariffs capped gains.

The Nifty 50 .NSEI rose 0.22% to 23,205.35, while the BSE Sensex .BSESN added 0.15% to 76,520.38.

Both the benchmarks lost about 0.3% at the open before reversing losses, helped by a 1.8% rise in IT stocks .NIFTYIT.

IT index has gained 4% in two sessions on the back of U.S. President Donald Trump announcing mammoth spending plans for AI infrastructure on Tuesday. The sector earns a significant share of its revenue from the United States.

A post-results rally in Coforge COFO.NS and Persistent Systems PERS.NS, which jumped 11.8% and 10.6%, respectively, also aided gains in the sector.

Wipro WIPR.NS climbed 2.8% and was among the top Nifty 50 gainers.

Expectations of growth in AI-related investments after Trump's announcement and the sector's relatively better earnings has helped IT stocks rise, powering the benchmarks higher, Mayuresh Joshi, head of equity research India at William O'Neil and Company.

However, uncertainty over Trump's tariff policies and soft domestic earnings will keep the pressure on markets, Joshi said.

Smallcaps .NIFSMCP100 and midcaps .NIFMDCP100 rose 1.1% and 1.9%, respectively, on the day, after losing about 4% each in the last two sessions.

Among individual stocks, India's biggest cement maker by capacity, Ultratech Cement ULTC.NS, climbed 6.8% after reporting third-quarter earnings above estimates, helped by strong volume growth.

Indian refiner BPCL BPCL.NS lost about 2.3% after missing December quarter profit estimates on lower margins and losses in its liquefied petroleum gas (LPG) segment.

Hindustan Unilever HLL.NS shed about 1% after the consumer goods maker projected near-term margins at the lower end of its forecast range due to a moderation in urban demand.