- IT stocks rebounded strongly on Thursday, ending a four-day losing streak
- Nifty IT index was the best performing sector with all constituents in positive
- Coforge led gains, rising 4.35%, followed by Mphasis and Infosys with gains near 4%
IT stocks staged a broad-based recovery on Thursday, snapping a four-session losing streak. The Nifty IT index was the top-performing sectoral gauge during the session, with every constituent trading in positive territory.
Leading the gains was Coforge, which climbed 4.35% to Rs 1,430.30, followed by Mphasis, up 3.99% to Rs 2,211.60. Among the large-cap names, Infosys advanced 3.97% to Rs 1,024.40, while Persistent Systems gained 3.51% to Rs 4,482.40.
HCL Technologies rose 3.48% to Rs 1,070.20, Tata Consultancy Services (TCS) added 2.48% to Rs 2,031.70, and Tech Mahindra gained 2.08% to Rs 1,390.60. Oracle Financial Services Software and Wipro also traded higher, extending the sector-wide rebound.
The recovery comes after a bruising sell-off that has made 2026 one of the sector's weakest years in decades. Investors have been grappling with multiple headwinds, including concerns that generative AI could disrupt the traditional IT services model, weak discretionary technology spending in the US, cautious commentary from global technology companies, valuation compression and sustained foreign institutional selling.
The correction has also brought renewed focus on cash-rich IT companies and the possibility of shareholder payouts. Among recent examples, Infosys and Wipro both completed buybacks that attracted overwhelming investor participation.
Infosys' stock currently trades nearly 45% below its November 2025 buyback price of Rs 1,800, while Wipro is about 32% below its June 2026 buyback price of Rs 250.
That has revived speculation around another round of buybacks, particularly at TCS, which has the strongest track record of returning cash to shareholders. The Tata Group company has undertaken five large buybacks since 2017, typically offering premiums of 10-18% to prevailing market prices. As of FY26, TCS reported cash and cash equivalents of over Rs 50,000 crore.
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