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Infosys, Wipro: IT stocks steal the show as Nifty IT jumps 2.6% against market trend; what’s driving the rally?
5 min read | Updated on October 21, 2026, 12:37 IST
SUMMARY
Indian IT stocks have found favour with investors amid encouraging Q2 FY27 earnings, healthy deal wins and optimistic management commentary from companies such as TCS, HCLTech and Wipro, as well as peers including Tata Elxsi and L&T Technology Services (LTTS).
IT stocks are in the spotlight also because IT services giant, Infosys, is slated to report its numbers this week.
The domestic equity market gave up all its early gains and slipped into the red in morning trade on Wednesday, October 21, as elevated crude oil prices weighed on investor sentiment. Profit booking in recent outperformers also contributed to the sharp retreat in benchmark indices from the day’s highs.
However, one sector that stood tall was IT services.
The NIFTY IT index surged as much as 2.63% to the high of 32,348.25 levels, with all 10 constituents trading in the green.
The top gainers were Infosys (up 2.44%), Tata Consultancy Services (TCS) - up 2.21%, Wipro - up 3.63%, and Tech Mahindra - up nearly 2%.
| Symbol | Open | High | Low | Prev. close | LTP | Change | % Change |
|---|---|---|---|---|---|---|---|
| NIFTY IT | 31,910.25 | 32,348.25 | 31,822.40 | 31,516.30 | 32,098.60 | 582.30 | 1.85% |
| INFY | 1,154.85 | 1,170.90 | 1,147.95 | 1,130.70 | 1,154.40 | 23.70 | 2.10% |
| TCS | 2,484.00 | 2,533.30 | 2,476.50 | 2,460.90 | 2,507.70 | 46.80 | 1.90% |
| TECHM | 1,795.20 | 1,824.20 | 1,790.00 | 1,779.10 | 1,807.40 | 28.30 | 1.59% |
| WIPRO | 183.99 | 189.75 | 183.72 | 182.14 | 188.05 | 5.91 | 3.24% |
| LTM | 4,269.20 | 4,343.10 | 4,250.20 | 4,264.90 | 4,270.60 | 5.70 | 0.13% |
| HCLTECH | 1,402.50 | 1,411.00 | 1,390.00 | 1,379.90 | 1,401.40 | 21.50 | 1.56% |
| COFORGE | 1,937.60 | 1,969.00 | 1,931.10 | 1,925.00 | 1,953.00 | 28.00 | 1.45% |
| PERSISTENT | 5,700.00 | 5,791.00 | 5,690.00 | 5,690.00 | 5,763.00 | 73.00 | 1.28% |
| MPHASIS | 2,500.00 | 2,580.00 | 2,491.00 | 2,500.00 | 2,550.90 | 50.90 | 2.04% |
| OFSS | 10,219.00 | 10,374.00 | 10,181.00 | 10,214.00 | 10,198.00 | -16.00 | -0.16% |
Why Indian stocks have become the Street’s favourite of late
Strategic partnerships with global technology leaders such as Nvidia, Anthropic and Google have also strengthened expectations that Indian IT companies could benefit from rising enterprise AI adoption.
Another factor supporting the sector is the rotation away from global AI-linked stocks amid concerns over elevated valuations and the sustainability of AI-led growth. This has made Indian IT services stocks appear relatively attractive after a prolonged correction.
However, Helios Capital’s Samir Arora has cautioned against celebrating declines in AI stocks or positioning India as an “anti-AI trade”, warning that a fall in US equities could also hurt Indian markets.
Arora also said India’s two-year period of market underperformance could be nearing an end and called for zero equity taxation for foreign portfolio investors (FPIs) to make Indian markets more competitive.
Infosys Q2 FY27 earnings eyed
IT stocks are in the spotlight also because IT services giant Infosys is slated to report its numbers this week.
The IT major is scheduled to announce its September quarter (Q2 FY27) earnings on Friday, October 23.
Investors will track revenue growth, deal wins, the demand outlook, management commentary on discretionary spending, and the company’s guidance for the remainder of FY27 amid continued focus on AI-led opportunities and global technology spending.
Parekh said the business, which includes building AI agents, coding work and modernising old technology for clients, is small relative to the company’s size but growing so fast that it could account for 20-30% of Infosys’ work within a few quarters if the current pace continues.
“It (AI services) is growing at a fantastic pace. If you sort of extrapolate that by a few quarters, you already start to see that’s 20-30% of our work in a few quarters, and maybe in two or three years, almost half of our work,” Parekh said at the Bloomberg New Economy Forum 2026.
He said the growth showed there was “a huge demand” for such services.
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