On 14 October, the Nifty IT index extended its rally by 1.8%, reaching an intraday high of 30,377.15 points, up from 29,830.10 at the previous close. The rise was driven by strong earnings momentum in the sector, with investors focusing on Q2 results amid a weak broader market. IT stocks such as Tata Consultancy Services, HCL Technologies, Infosys, and LTM led the gains, reflecting healthy earnings performance and robust revenue from AI operations. The sector’s 9% gain over the last five trading sessions underscores the sustained investor confidence.

At 12:30 pm IST, the Nifty IT index traded 1.1% higher at 30,156 points, compared with the prior equity market close. Infosys, TCS, Wipro, and LTM were the top gainers that day, with each posting significant intraday returns. Tata Elxsi’s earnings release on Tuesday evening, showing revenues and margins above estimates, also contributed to a spillover support effect across the IT pack. The market’s focus on Q2 earnings and strong deal wins has attracted capital rotation from crude‑oil‑sensitive sectors into high‑growth tech stocks.

TCS disclosed its September quarter performance, reporting a consolidated net profit surge of about 15% to ₹13,884 crore. Revenue from core operations advanced 11.2% year‑on‑year, while total contract value (TCV) rose to $9.6 billion. The company’s AI revenues reached $3.1 billion, crossing 10% of overall revenue, reflecting the sector’s AI momentum. Infosys CEO Salil Parekh highlighted that AI services accounted for over 8% of revenue in Q2 and are growing at a double‑digit rate sequentially, with AI expected to drive almost half of its work in the next two to three years.

HCL Technologies’ earnings were in line with, and slightly ahead of, market estimates, reinforcing investor sentiment amid global AI concerns. The firm posted nearly 11% growth in consolidated profits and an 11.5% rise in core‑operations revenue year‑on‑year, with a 3% sequential jump in the September quarter. HCL revised its lower revenue and services guidance for FY27, now expecting revenue growth of 2.5%–4% YoY in constant currency terms. These figures support the broader IT rally despite lingering caution over organic growth and segment weakness.

The IT pack’s 1‑week returns illustrate the sector’s resilience: Infosys rose 9.6%, TCS 11%, Wipro 7.6%, LTM 8.8%, Tech Mahindra 4.4%, HCL 12.8%, Coforge 6.2%, and Persistent Systems 8%. Intraday highs ranged from ₹171.80 for Wipro to ₹6,078 for Persistent Systems. These gains reflect strong earnings momentum, robust AI revenue growth, and healthy deal wins across the sector, sustaining the Nifty IT index’s upward trajectory.

While the rally is buoyed by positive Q2 earnings and AI revenue momentum, investors remain cautiously optimistic. Concerns persist over the organic growth of IT companies and overall weakness in certain segments. Analysts note resilient services growth and strong margins, yet they monitor growth and valuations closely. The sector’s performance, however, continues to attract capital rotation from oil‑sensitive markets, reinforcing the IT index’s 9% rise over the past five trading sessions.