Nifty IT Index

Thus far in October, the Nifty IT index has rallied 16% as TCS, Tech Mahindra, Wipro, Infosys and Mphasis surged in the range of 18-23% amid Q2 earnings cheer.

At 10:12 AM on Friday, the Nifty IT index was the top sectoral gainer, up 2.8%. Tech Mahindra, Wipro, Infosys and TCS surged up to 7% amid Q2 earnings cheer.

Market experts attribute the rally to a combination of earnings resilience, value buying after a prolonged correction, and a possible rotation of funds away from AI-linked technology stocks.

In the past four trading days, Nifty IT index outperformed the market by gaining 5.6% as against a 1.2% rise in the Nifty 50.

IT shares: Analysts expect IT companies to witness moderate improvement in Q2FY27, as macro headwinds from the Middle East conflict continue to weigh on client spending and decision-making.

The Nifty IT index advanced 2.1 per cent during intra-day deals, with nine out of ten constituent stocks of the index trading in the green.

The weakness in IT stocks was followed by the US Federal Reserve's decision to hike the key lending rate by 0.25 basis points to 3.75-4 per cent.

Indian IT stocks have been one of the biggest casualties of AI boom, having lost 21 per cent on a year-to-date basis.

n the IT basket, stocks registered declines in the range of 5-9 per cent. Based on the day's low, Coforge emerged as the biggest loser with an 8.7 per cent fall.

In the IT basket, stocks registered declines in the range of 2-4 per cent. Infosys emerged as the biggest loser with a 3.8 per cent fall.

So far this month, the IT index remains unchanged. In July, it recorded its best gain in six months following a 17 per cent rise.

IT stocks rallied on Friday after Nvidia's strong revenue forecast reinforced optimism around the artificial intelligence (AI) boom.

In the past one week, Nifty IT index has corrected 4.8 per cent, compared to 1.2 per cent decline in the Nifty 50.

IT stocks in demand: Tata Consultancy Services (TCS), Tech Mahindra, LTM, HCL Technologies and Mphasis gain 3 per cent each in intra-day deals on Friday.

Technology stocks witnessed some profit-taking on Friday following a 19% rally in the Nifty IT index this July.

AI trade is unwinding from the inside. The largest hyperscalers are funding capex with debt at a scale that has turned free cash flows negative said Manish Bhandari, CEO at Vallum Capital.

The Nifty IT index rebounded over 21 per cent after hitting its 52-week low of 25,699.10 on July 1, 2026.

Thus far in the month of July, the Nifty IT index rallied 15 per cent, as compared to 0.6 per cent rise in the Nifty 50.

The sharp gains in IT stocks today follow easing valuations, a decent Q1 show, and an improving outlook after a sharp selloff this year.

On the broader market outlook, Ajit Mishra, SVP-Research of Religare Broking says the Nifty remains in consolidation mode, with key support at 23,600. On the upside, bullish pivot stands at 24,600.