Tech Mahindra, TCS, HCL Technologies, Infosys, and Wipro were among the large-cap IT stocks that ended the week with strong double-digit gains, powered by stronger-than-expected September-quarter performances and a weakening global AI trade that prompted investors to rotate back into the software sector.
Six of the 10 constituents of the Nifty IT index ended the week with gains of over 10%, with Tech Mahindra leading the pack after surging 18.7% as it closed higher in each of the last four trading sessions.
It was followed by (TCS), , , , and which ended the week with gains of 18.7%, 17.3%, 16.5%, 16.4%, and 12.1%, respectively.
Amid strong support from heavyweight stocks, the Nifty IT index finished the week with an 11.72% surge, marking its best weekly gain in 18 years. It reclaimed the 30,000 mark and also touched an eight-month high.
The recovery has also helped the stock recoup nearly half of its 2026 losses, after it had fallen 32%. The index’s year-to-date decline now stands at 15.7%. Alongside, the recovery rally has boosted confidence on Dalal Street, helping the Nifty post its best weekly performance in six months.
Q2 earnings revive hopes of a recovery
The rally has provided a much-needed boost to a battered sector that had been plagued by fears of AI-driven disruption, concerns over interest rates, and sustained foreign institutional investor (FII) selling, dragging several constituents to multi-year lows.
However, the about the sector’s near-term growth prospects, helping revive sentiment towards IT stocks.
Stronger-than-expected performances from major companies have also eased some concerns over slowing demand and the potential impact of artificial intelligence on traditional software services.
Tech Mahindra’s second-quarter revenue came in above expectations, aided by robust deal wins, while Wipro also reported stronger-than-expected quarterly revenue, with signs that delayed large deals could support growth in the coming quarters.
HCL Tech’s quarterly performance, , and healthy deal wins bolstered confidence in the sector’s earnings outlook. TCS also delivered a healthy set of numbers for the second quarter.
The recent rally suggests that investors are reassessing valuations and returning to the sector after a prolonged sell-off. Whether the rebound can sustain its momentum will depend on the outlook for revenue growth, deal wins, client spending, and the extent to which IT companies can translate AI-related opportunities into meaningful business growth.
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