A global sell-off in artificial intelligence-linked stocks pushed investors toward traditional software companies, handing Indian IT its best weekly performance in recent memory and dragging the broader market to a second consecutive weekly gain. The Nifty IT index surged nearly 4 per cent on Friday alone and over 10 per cent for the week, as Tech Mahindra, TCS and Infosys delivered quarterly numbers that reinforced confidence in the sector.
The closed at 23,146.15, up 148.80 points or 0.65 per cent for the session, while the ended at 74,729.27, adding 413.66 points. For the week, the Nifty gained 2.8 per cent and the Sensex rose 2,250 points. The Nifty has now recovered over 950 points from the 22,580–22,620 support zone reached two weeks ago, marking its strongest pullback since the August 2026 peak of 24,774.
“IT earnings are rebuilding confidence, and global tech sentiment is steadier,” said Sarvam Goel, Founder of Pocketful. “But liquidity is about to be tested by the Jio IPO, while crude, FII flows and bond yields remain the forces that will decide whether this recovery has legs. One strong week is a start, not a trend.”
IT stocks rise
Tech Mahindra was the session’s standout, rising around 7 per cent after reporting Q2FY27 net profit of ₹1,585.6 crore, up 32.74 per cent year-on-year. The company also announced a 1:1 bonus issue and an interim dividend of ₹15 per share. TCS rose 3.26 per cent and Infosys gained nearly 4 per cent, with HCLTech’s improved growth guidance adding to sectoral momentum. Federal Bank gained 2.9 per cent after its Q2 net profit rose 45.1 per cent year-on-year to a record ₹1,386 crore.
The advance was far from broad-based. Bank Nifty finished nearly flat at 55,844. FMCG fell 0.4 per cent, weighed down by input cost pressures and soft consumption demand, while real estate and pharma also ended lower. The Nifty Midcap 100 slipped 0.11 per cent and the Nifty Smallcap 100 was down 0.01 per cent. Market breadth was modestly positive, with advances outpacing declines 1.44:1.
The rupee strengthened to around ₹94.79 to the dollar, aided by RBI intervention. Brent crude remained elevated near $105.70 a barrel, keeping pressure on India’s import bill, while the US 10-year Treasury yield held near 5.09 per cent, posing a continued headwind to emerging-market flows. Gold imports fell 81.27 per cent year-on-year to $1.8 billion in September following a duty hike.
What’s ahead?
“Sustaining the recovery will require broader earnings growth beyond IT, supported by an improvement in domestic demand and easing margin pressures,” said Vinod Nair, Head of Research at Geojit Investments Limited.
The week ahead carries significant event risk. HDFC Bank, ICICI Bank and Axis Bank are scheduled to report quarterly results on Saturday, and their numbers are expected to set the tone for financial sector sentiment. Jio Platforms’ ₹30,213 crore IPO — a 100 per cent fresh issue — opens for subscription on October 21 and, if fully subscribed, could surpass Hyundai Motor India’s offering as the largest IPO in Indian market history.