The Nifty IT index has surged more than 10% in five sessions as stronger earnings, improving outlooks and bargain hunting lift major technology shares.
Indian IT shares extend their rally as earnings lift sentiment
Indian information technology stocks extended their advance on Friday, with the Nifty IT index climbing more than 3% as investors continued to buy into the sector after a run of quarterly results and improved outlook comments. By mid-session on October 16, 2026, the index had risen to 31,697.20, taking its five-day gain to just over 10%, according to market data, while broader index trackers showed it ended the day in a similar range.
The move was led by Tech Mahindra, which rose 8.06% on the day, followed by Wipro, TCS and Infosys. Larsen & Toubro Technology Services and HCL Technologies also gained. Over the five sessions from October 12 to October 16, Tech Mahindra was the strongest performer among the large IT names, rising 21.21%, while TCS climbed 15.13%, Wipro 13.84%, Infosys 12.85%, HCLTech 12.38% and L&T Technology Services 7.98%, according to the figures in the market summaries.
The rally has added roughly Rs 2.73 lakh crore to the combined market value of TCS, Infosys, HCLTech, Tech Mahindra, Wipro and L&T Technology Services in five trading days. TCS accounted for the biggest chunk of that increase, followed by Infosys and HCLTech, reflecting the strength of the rebound across the group rather than a move driven by just one company.
Earnings have been the main catalyst. HCLTech and TCS helped improve investor confidence after their July-to-September results, while Tech Mahindra also drew buying after reporting a 32.74% rise in consolidated net profit for the September quarter. Wipro gained after revenue came in ahead of expectations, even though net profit slipped slightly year on year.
Investors are now watching whether the improvement in demand can be sustained. Market participants are especially focused on deal wins, client spending and management commentary on pipelines, with Wipro saying two delayed large deals could close soon. The sector is also being watched for any benefit from artificial intelligence projects, although analysts and investors remain cautious about how quickly those opportunities will turn into meaningful revenue. A broader sell-off in AI-linked technology shares overseas has also pushed some investors towards Indian IT names, which are seen as comparatively better value at current levels.
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