On the Nifty, TCS was the top gainer, up 3.4 per cent, while Wipro and Infosys advanced more than 2 per cent each. HCL Tech shares traded 1.3 per cent higher.
IT stocks had come under sharp selling pressure after two of India's biggest outsourcers - Infosys and TCS - forecast weak revenue growth in the March quarter. Recent gains in the rupee also weighed on sentiments as IT companies earn a major part of their revenues in dollars.
However, US Federal Reserve's hawkish outlook on interest rates led to a strengthening of the greenback. The dollar traded at two-week highs against a basket of major currencies early on Thursday, having posted solid gains after comments from Fed Chair Janet Yellen prompted markets to bring forward interest rate hike expectations.
The rupee slipped to one-week low of 61.40 in trade today on concerns over redemption by foreign funds, who have been the key driver of rupee. FIIs have invested a total of $3.6 billion in bonds and equities in March.
Analysts said the recent selloff in IT stocks presents good buying opportunity.
Polaris Financial Technology rose as much as 11 per cent extending its gains to over 50 per cent in 3 days ever since after the software services firm said its board had approved a split of the company into two businesses.