Till Tuesday in October 2026, the Nifty IT index outperformed the market and rallied 12%, compared to 0.05% decline in the Nifty 50.
BFSI demand and rising AI revenue helped Indian IT firms withstand weak growth in Q2FY27, with Tech Mahindra standing out, although analysts caution that a broader recovery remains elusive
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.
Wipro's net profit fell 1.4 per cent year-on-year to ₹3,201 crore in the second quarter of financial year 2027.
Urban Company, Federal Bank, Punjab National Bank, LTM, Bajaj Housing Finance, Crompton Greaves Consumer Electricals, DLF, Jindal Saw, Oberoi Realty, Shoppers Stop, will report Q2FY27 results today.
IT services revenue, the main metric, for the quarter ended September 30 was up by just 0.3 per cent from the year-ago period
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.
Q2FY27 results today: Jio Financial, Wipro, Nestle India, HDFC AMC, HDFC Life, and Indian Bank, and 43 other firms will announce their earnings for the second quarter of financial year 2026-27
HDFC Life Insurance, Jio Financial Services, Nestle India, Tech Mahindra, Wipro, HDFC AMC will announce Q2FY27 results today.
Overall, analysts expect Wipro to post nearly 8 per cent year-on-year (YoY) rise in revenue during the quarter under review, along with single-digit growth in earnings before interest and taxes.
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 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.
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.
IT services firms are targeting GCCs for scale, steady revenue and domain expertise as weak organic growth and AI put pressure on traditional contracts
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.
Going ahead, analysts suggest investors stick to domestic economy-focused sectors as the geopolitical situation still warrants caution.
Macquarie recently initiated coverage on BSE shares with an 'outperform' tag. BSE ranks above NSE in the global brokerage's pecking order for capital market stocks.
The sell-off was driven by high US bond yields, a strong dollar, FPI outflows, crude oil concerns and weakening domestic growth signals.
The Nifty IT index has underperformed in September, falling over 11%, as against a 6% decline in the Nifty 50.