The Nifty IT index rallied on Thursday, Oct. 15, as buying in information technology stocks extended into a third session, supported by encouraging quarterly results, improving sentiment around IT services demand, and renewed interest in the sector.
The rally came even as global technology stocks faced pressure over concerns about inflation, rising AI investment costs, and the returns from artificial intelligence.
At around 11:15 a.m., the Nifty IT index was up 2.06% to 30,793.15, with most of its constituents trading in the green. The index had surged 5.2% on Tuesday, its biggest single-day gain in around 17 months, after HCLTech's September quarter results beat expectations.
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HCLTech, Tech Mahindra Among Top Gainers
HCLTech led the gains among major IT stocks on Thursday, rising 3.50% to Rs 1,373.40. Tech Mahindra advanced 3.42% to Rs 1,629, while TCS gained 2.49% to Rs 2,362.40.
Infosys climbed 2.31% to Rs 1,113.10, LTIMindtree rose 2.07% to Rs 4,313.40, and Wipro gained 1.61% to Rs 173.68. Mphasis was up 0.70% at Rs 2,452.30, while Coforge edged up 0.41% to Rs 1,936.
HCLTech's second-quarter performance has been a key trigger behind the three-day consecutive rally. The company reported consolidated net profit of Rs 5,132 crore, up 11% sequentially, while revenue rose to Rs 35,620 crore.
TCS also traded higher after reporting a sequential increase in profit and revenue for the September quarter. Net profit of TCS rose 4% to Rs 13,884 crore, while revenue increased 1.3% to Rs 73,188 crore.
Also Read: HCLTech Share Price Jumps 6% After Q2 Beat; Brokerages Split On Growth Outlook
Oracle Financial Services, Persistent Systems Bucked the Trend
Only two of the constituents of the Nifty IT index, Oracle Financial Services Software and Persistent Systems, fell 2.35% and 0.91%, respectively.
However, no clear company-specific trigger was established for either stock's decline at the time of writing.
AI Concerns And Global Cues Remain In Focus
The Indian IT rally has unfolded alongside weakness in global technology stocks. Concerns over the cost of AI infrastructure, heavy borrowing by AI companies, and uncertainty about future returns have weighed on US technology and semiconductor shares.
This has encouraged some investors to reassess Indian IT services companies, which are seen as potential beneficiaries of AI adoption but also face risks from automation, pricing pressure, and changes to traditional billing models.
However, hotter-than-expected US inflation has revived concerns about further Federal Reserve tightening, keeping the global backdrop uncertain. Investors will continue to assess whether quarterly earnings, deal momentum, and AI-led revenue growth can sustain the recovery in Indian IT stocks.
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