Nifty IT Index Jumps Over 2% on a Weak Rupee as Mphasis, Coforge and Infosys Lead IT Stocks Before Q2 FY27 Results
- October 1, 2026
- Posted by: Kunal Singla
- Category: News
Nifty IT up 2.1% on 1 Oct. Mphasis +4.44%, Coforge +3.85%, Infosys +2.42%, TCS +1.70%. Nifty 50 near 22,568. TCS Q2 results on 8 Oct.
Quick Answer
The Nifty IT index rose about 2.1% on 1 October and was the top sectoral gainer, even as the Nifty 50 and Sensex slipped. Mphasis gained 4.44%, Coforge 3.85% and Infosys 2.42%, helped by a weak rupee and positioning before results. Brokerages expect a muted quarter for large companies, with constant-currency growth of negative 0.5% to 3% quarter on quarter, while mid-caps could grow up to 12%. TCS opens the Q2 FY27 earnings season on 8 October.
The Nifty IT index today is the one bright spot in a falling market. While the Nifty 50 traded near 22,568 and the Sensex near 72,480 in the morning, nine of the ten stocks on the Nifty IT index traded higher, led by Mphasis, Coforge and Infosys. The move comes days before TCS reports Q2 FY27 results on 8 October, and after the index fell for eight straight sessions through 29 September.
If you are searching for why IT stocks are rising today, this article explains the Nifty IT index move, the rupee link, what Kotak Institutional Equities and Motilal Oswal expect from Q2 FY27 results on constant-currency growth, mid-cap names and margins, and the risks from AI and soft demand. Price data is based on NSE and BSE figures, so recheck it before acting.
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Why Is the Nifty IT Index Rising Today?
The Nifty IT index is rising because of a weaker rupee and positioning ahead of the Q2 FY27 results season. The index gained 2.1% at the last check in morning trade, and it was the top sectoral performer on a day when the Nifty 50 fell 0.49% to an intraday low of 22,508.
Selling in the broader market has been heavy, with the rupee testing the 96 mark against the dollar late in September. IT companies earn most of their revenue in dollars, so that move supports the sector. Brokerage previews for the quarter also helped sentiment by pointing to stable margins and stronger growth in mid-tier names.
Nifty IT Index Today: Top Gainers and Laggards
| IT stock | Move on 1 October | What the brokerages say |
|---|---|---|
| Mphasis | Up 4.44% | Mid-tier growth expected to be strong |
| Coforge | Up 3.85% | Kotak preferred pick, mid-tier growth leader |
| Infosys | Up 2.42% | Kotak expects a guidance cut |
| TCS | Up 1.70% | Reports Q2 FY27 results on 8 October |
| HCLTech | Up 1.56% | Kotak: the exception among large companies |
| Tech Mahindra | Up 1.44% | Kotak: leads growth among hybrids, preferred pick |
| Oracle Financial Services Software | Down 0.97% | The lone laggard on the index |
Persistent Systems, Wipro and LTIMindtree also traded higher. The spread of gains matters: nine of ten constituents rising points to sector-wide buying in the Nifty IT index, not a single-stock event.
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How a Weak Rupee Helps the Nifty IT Index
A weaker rupee raises the rupee value of dollar revenue, which can lift reported revenue and support margins for IT services companies. Most large Indian IT firms bill clients in dollars and pay many costs in rupees, so a falling rupee widens the gap.
The benefit has limits. Companies often pass part of the gain to clients over time, and a weak rupee is a symptom of foreign selling and high US bond yields that also hurt sentiment. The rupee therefore supports the Nifty IT index but does not fix weak demand.
Q2 FY27 Results Expectations for the Nifty IT Index: What Brokerages Say
Consensus estimates point to a tepid Q2 FY27 for large IT companies, with constant-currency growth of negative 0.5% to 3% quarter on quarter. Mid-caps are expected to outperform again, with growth of up to 12% driven by large-deal ramp-ups and some inorganic contribution. The IT earnings season starts on 8 October with TCS, whose board will also consider a second interim dividend.
| Brokerage | View on Q2 FY27 results |
|---|---|
| Motilal Oswal | Demand commentary to stay soft despite a seasonally strong quarter; no quarter-on-quarter growth acceleration in its coverage; softness to extend into Q3 on furloughs |
| Kotak Institutional Equities | Demand neither better nor worse than the June quarter; muted quarter for large companies with HCLTech the exception; stable margins; Infosys guidance cut expected |
Kotak also said AI deflation is becoming visible in the base business, with challengers gaining share while incumbents defend revenue. Its preferred picks are Tech Mahindra, Coforge, Sagility and Indegene. Motilal Oswal cited macro pressure, interest rate hikes, AI-related disruption and geopolitical overhang as drags on discretionary tech spending.
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Nifty IT Index Key Numbers and Levels
| Item | Latest figure | Context |
|---|---|---|
| Nifty IT index move, 1 October | Up about 2.1% | Top sectoral gainer |
| Nifty 50 intraday low, 1 October | 22,508 | The index fell 0.49% at the low |
| Sensex intraday low, 1 October | 72,188 | Down about 0.40% at the low |
| Mphasis price | About Rs 2,211 (30 September) | 52-week range Rs 2,013 to Rs 2,975 |
| Coforge price | About Rs 1,805 (1 October) | 52-week range Rs 1,008 to Rs 2,021 |
| Infosys close, 30 September | Rs 994.10 | Down about 30% over one year |
The context is a long downtrend. Infosys is down about 30% over twelve months, and the Nifty IT index fell for eight sessions in a row to 29 September, so a 2% jump in the Nifty IT index is a rebound and not yet a trend change.
Risks Behind the Nifty IT Index Rally
Soft demand: Both Motilal Oswal and Kotak describe demand as muted, and softness may extend into Q3 on furloughs.
AI deflation: Kotak says price pressure from AI is now visible in the base business, which hurts incumbents.
Guidance risk: A guidance cut from Infosys, as Kotak expects, could weigh on the Nifty IT index even if results are in line.
Rupee reversal: If the rupee strengthens or foreign selling eases, the currency tailwind for IT stocks would fade.
Valuation gaps: Mid-cap IT names trade at higher multiples than large caps, so growth misses would be punished harder.
What Should Investors Watch Next for the Nifty IT Index?
- TCS Q2 FY27 results on 8 October and any dividend announcement.
- Infosys guidance for FY27, where a cut is expected.
- HCLTech’s growth outlook, flagged as the large-cap exception.
- Mid-cap commentary from Persistent Systems, Coforge and Mphasis.
- The rupee, US bond yields and foreign flows.
Conclusion
The Nifty IT index jumped 2.1% on 1 October on a weak rupee and pre-results positioning, with Mphasis, Coforge and Infosys leading nine of ten stocks higher. The Q2 FY27 results season, starting with TCS on 8 October, will show whether the rebound has support, since brokerages expect muted large-cap growth and soft demand. Consult a SEBI-registered advisor before making any decision.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Why is the Nifty IT index rising today?
Ans. The Nifty IT index rose about 2.1% on 1 October because of a weaker rupee and positioning before Q2 FY27 results. Nine of the ten stocks on the index traded higher, led by Mphasis, Coforge and Infosys.
Which IT stocks gained the most on 1 October?
Ans. Mphasis led the Nifty IT index today with a 4.44% gain, followed by Coforge at 3.85% and Infosys at 2.42%. TCS rose 1.70%, HCLTech 1.56% and Tech Mahindra 1.44%, while Oracle Financial Services Software fell 0.97%.
When will TCS announce its Q2 FY27 results?
Ans. TCS will announce its September-quarter results on 8 October 2026, opening the IT earnings season. Its board will also consider declaring a second interim dividend.
How does a weak rupee help IT stocks?
Ans. IT companies earn most revenue in dollars, so a weaker rupee raises revenue in rupee terms and can support margins. Part of the gain is often passed on to clients over time.
What do brokerages expect from Q2 FY27 results for IT companies?
Ans. Consensus points to constant-currency growth of negative 0.5% to 3% quarter on quarter for large companies and up to 12% for mid-caps. Motilal Oswal and Kotak both expect soft demand and stable margins.
What are the risks for IT stocks after the rally?
Ans. Key risks are soft demand, AI-driven price pressure, a possible Infosys guidance cut and a reversal in the rupee. The Nifty IT index also fell for eight sessions before this bounce.
Is the Nifty IT index a good buy now?
Ans. This article does not constitute investment advice. The sector offers a currency tailwind but faces muted demand and AI-related pressure. Consult a SEBI-registered financial advisor before investing.
What is the Nifty IT index?
Ans. The Nifty IT index tracks ten large IT companies listed on the NSE, including TCS, Infosys, HCLTech, Wipro, Tech Mahindra, Mphasis and Coforge. It is a common benchmark for the Indian IT services sector.
