Nifty IT Stocks

Investors added ₹8.04 trillion to their wealth as the market capitalisation of all BSE-listed companies swelled to ₹482.41 trillion from ₹474.37 trillion on Friday.

So far this year, Infosys shares remain 31 per cent lower amid a selloff in traditional IT services companies on AI-led deflation fears.

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.

This comes as AI sell-off drives investors towards the country's software firms

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.

India's top software exporters have surged over 10% this week as global chip stocks fall 7.4%, with analysts pointing to AI valuation concerns and signs of improving revenue growth in the IT sector

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.

Tech Mahindra's board will mull a dividend payout and a bonus issue along with the Q2 results announcement.

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.

HCL Tech's board would consider the payout of a third interim dividend for FY27, along with Q2 results.

IT stocks: All index constituents traded in the green, buoying the 10-stock Nifty IT 3.13 per cent to 28,604 during the intraday session.

Stocks to watch today: Anand Rathi, Canara Robeco, Can Fin Homes, and Poonawalla Fincorp are among the companies slated to post their Q2 results today.

TCS Q2 results: Analysts expect large IT companies, such as TCS, to lag mid-tier firms amid macro uncertainty, AI-led productivity and increased competition.

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 Nifty IT index has underperformed in September, falling over 11%, as against a 6% decline in the Nifty 50.

18 of the 50 Nifty stocks are trading more than 20 per cent below their respective 52-week highs, with a market cap erosion of ₹31.35 lakh crore in the same period.

As of Friday's close, OFSS shares are up 55 per cent on a year-to-date (YTD) basis, making it the best-performing stock in the worst-performing Nifty IT index.

Over a five- or 10-year view, if I were an Indian mutual fund investor, it makes sense to allocate half of your inflows into small- and mid-cap funds, Wood said.

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.