IT stocks bounce back after sharp selloff; Coforge, HCL Technologies, Tata Elxi among top gainers

IT stocks are buzzing in trade on Friday ahead after a sharp sell-off on Thursday. Shares of key IT names like HCL Technologies, Coforge, and Mphasis are among the top gainers in the early trading session on Friday. The NIFTY IT index was the top sectoral gainer, trading with gains of 0.6%.

Coforge (+1.5%), HCL Technologies (+1.2%), Mphasis (+1.01%), LTIMindtree (+0.99%), and Tech Mahindra (+0.8%) were the top gainers in the NIFTY IT index. While other IT bellwether companies like Tata Consultancy Services (+0.4%), Infosys (+0.5%) and Wipro (+0.42%) also traded in green with modest gains.

While the NIFTY Mid-Small IT & Telecom index was also up over 0.7% with strong gains led by Vodafone Idea (+2.6%), Indus Tower (+2.12%). Additionally, mid and small IT stocks like Tata Elxi, Coforge, KPIT Technologies also rallied nearly 2%.

Q3 earnings preview for IT stocks

HSBC, in its latest report, said that it had expected the IT sector to outperform the broader market in 2026 due to expectations of a recovery in growth, more reasonable valuations, a favourable base after three years of weak performance, and easing concerns around the impact of artificial intelligence.

Analysts tracking the sector believe the impact of furloughs and holidays in Q3 is likely to be similar to that seen last year. Demand beyond essential services or in select pockets has also not shown any significant change during the period.