Nifty IT Stocks

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.

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.

Coforge chairman OP Bhatt resigned after an internal ​audit into a board evaluation found concerns, ​including that material information about his own performance not fully disclosed to the board.

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.

Analysts believe stronger earnings visibility and company-specific growth drivers have managed to drive this outperformance.

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.

Investors say Nvidia's growth confirms expansion phase of AI capital spending

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

Brokerages JM Financial and Emkay Global maintained their 'ADD' ratings on TCS stock following the strategic deal announcement with Porsche.

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.

The Nifty IT pack rebounded with an 18.4 per cent rise this month. Before this, Nifty IT's best show was in June 2020 when it rose 22.5 per cent.

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

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

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

However, despite recovery from lows, the Nifty IT index underperformed the market by falling 22 per cent, as against a 7.2 per cent decline in the Nifty 50 thus far in CY2026.

Brokerages said that TechM's Q1 revenue and margins exceeded estimates, and strong deal TCV provides strong revenue visibility.