Nifty IT Surges 2.4% Against a Falling Market: Coforge, Tech Mahindra and OFSS Lead the IT Sector’s Second Straight Session of Outperformance on 18 May 2026

The Nifty IT index rose 2.4 percent on 18 May 2026, standing out sharply against a broader market where Nifty 50 fell over 230 points and Sensex dropped more than 830 points. All 10 constituents of the Nifty IT index traded in the green, with Coforge surging up to 10 percent on strong Q4 FY26 results, Tech Mahindra gaining 1.3 to 2.5 percent, Oracle Financial Services Software (OFSS) up over 3 percent and LTIMindtree rising over 2 percent. This is the second consecutive session of IT sector outperformance versus a weak broader market.

Nifty IT Stocks Performance on 18 May 2026

• Nifty IT Index: Up 2.4%, trading at approximately 28,010 levels — outperforming Nifty 50 by over 3 percentage points
• Coforge (NSE: COFORGE): Up as much as 10%, touching Rs 1,285.60 on Q4 FY26 results. Top performer in the Nifty IT session.
• Oracle Financial Services Software (OFSS): Up over 3% — strong institutional demand
• LTIMindtree (NSE: LTIM): Up over 2% at Rs 4,055.10 on NSE
• Tech Mahindra (NSE: TECHM): Up 1.3 to 2.5% — recovering from recent IT sector selloff
• Persistent Systems: Up 3.21% — mid-cap IT momentum continuing
• Infosys: Up 0.63% — large-cap laggard relative to mid-caps today
• All 10 Nifty IT constituents: In the green, confirming broad-based sector buying rather than stock-specific moves

Track Nifty IT index live, all IT stock prices and sector data on the Check the Univest Screener for live data.

Three Triggers Behind the Nifty IT Rally on 18 May 2026

Trigger 1: Rupee at Record Low of 96.17 — A Direct Tailwind for IT Margins

The primary macro driver behind the Nifty IT rally today is the Indian rupee crashing to a fresh record low of 96.17 against the US dollar, down 20 paise from the previous close. For Indian IT companies, which derive 60 to 80 percent of their revenues from overseas clients — primarily in the US — a weaker rupee is a direct earnings tailwind. When the rupee weakens against the dollar, each dollar of US client revenue translates into more rupees on the income statement, mechanically improving reported revenue, operating margins and net profit in INR terms.

At Rs 96 per dollar versus Rs 85 a year ago, Indian IT companies are getting approximately 13 percent more rupees for every dollar earned. This currency windfall is visible in improved earnings realisation across TCS, Infosys, Wipro, HCL Technologies and mid-caps like Coforge and LTIMindtree. Investor sentiment improved sharply as the rupee’s slide to 96.17 made the Nifty IT sector’s earnings outlook in rupee terms significantly better than analysts had projected at the beginning of FY27.

Trigger 2: Coforge Q4 FY26 Results — Revenue +30%, PAT Nearly Doubles

Coforge’s Q4 FY26 results, released ahead of 18 May trading, acted as a specific catalyst for the Nifty IT rally. The mid-cap IT company reported a multifold surge in consolidated net profit to Rs 612.3 crore from Rs 261.2 crore in Q4 FY25. Revenue grew 30 percent to Rs 4,450.4 crore from Rs 3,422.2 crore. On a sequential basis, revenue grew 5.2 percent and profit more than doubled. Coforge’s CEO Sudhir Singh said the company enters FY27 with an order executable of USD 1.75 billion and expects to deliver EBITDA above 20.5 percent on a consolidated basis.

Two specific events boosted Coforge’s numbers: the Cigniti merger created a reversal of deferred tax liability that inflated reported PAT, and Coforge completed the USD 2.5 billion acquisition of Silicon Valley-based AI firm Encora in April 2026. The Encora acquisition positions Coforge as a meaningful AI-focused IT services player, adding approximately 13,000 AI specialists to its team and strengthening its order book in AI implementation services — the precise market that is expanding even as generic IT outsourcing faces AI disruption pressure.

• Coforge FY26 full-year net profit: Rs 1,555.7 crore, up 91.5% from Rs 812.1 crore in FY25
• Order executable at end of Q4: USD 1.75 billion
• Headcount at end of Q4: 35,777 employees (added 436 in the quarter)
• Key acquisition: Encora (AI firm, USD 2.5 billion EV, completed April 2026) + Cigniti Technologies

Trigger 3: Wall Street Tech Strength Improving Global Risk Appetite

The third catalyst for the Nifty IT rally is the continued strength in US technology stocks. Gains in major US technology companies on Wall Street improved risk appetite globally and lifted optimism around enterprise technology spending demand. For Indian IT companies whose clients are predominantly US technology and financial sector companies, Wall Street tech strength signals healthy enterprise IT spending budgets, continued demand for digital transformation services and resilience in the outsourcing decision cycle.

Market participants also noted that stabilising macroeconomic conditions in the US — despite elevated inflation — and resilience in global technology spending are supporting the demand outlook for Indian IT services. Any improvement in US enterprise confidence directly translates into larger IT contract sizes and faster decision timelines for projects that were delayed during 2025’s tariff-uncertainty period.

Tap to Access Best Research Pieces on Univest

Why the Nifty IT Rally Is a Counter-Trend Move — Not a Reversal

Despite the 2.4 percent single-day Nifty IT surge, investors should note the broader context. The Nifty IT index is still down approximately 25.3 percent year-to-date in 2026 at 28,010 levels versus its January 2026 peak. The index has fallen from levels above 36,000 earlier this year on three overlapping headwinds: Anthropic’s services company launch threatening India’s IT outsourcing business model, mixed earnings guidance from major firms including TCS and Wipro, and the general FII outflow environment driven by crude above $111.

Today’s rally is a two-session bounce from deeply oversold levels rather than a fundamental trend reversal. Pranit Arora of Univest has consistently flagged IT as a sell-on-rise sector in the current market environment, noting that the Anthropic-driven structural headwind to Indian IT outsourcing is a multi-year theme that cannot be resolved by currency tailwinds alone. The bounce from current levels may have more to run in the near term given the oversold positioning, but the medium-term caution on the Nifty IT outlook remains warranted.

Nifty IT Vs Nifty 50: The Great Divergence on 18 May 2026

• Nifty 50: Down over 230 points (approximately -1.0%) on crude above $111 and rupee at 96.17
• Nifty IT: Up 2.4%, every constituent in the green
• Spread: Over 3.4 percentage point outperformance by Nifty IT versus Nifty 50
• Reason for divergence: The same macro force (rupee weakening) that hurts the broader market (higher import costs) directly benefits IT exporters (more rupees per dollar). Crude above $111 has zero direct impact on IT sector earnings.

This divergence Nifty IT up while Nifty 50 falls is a classic pattern during rupee depreciation-driven market stress and reinforces the portfolio case for maintaining IT sector allocation as a natural hedge against the macro forces currently driving Sensex and Nifty lower.

Download the Univest iOS App or the Univest Android App to get daily stock recommendations and insightful research pieces on Nifty IT live index, all IT stock prices and sector performance data!

The AI Question: Headwind and Opportunity Simultaneously

The elephant in the Nifty IT room remains artificial intelligence. Anthropic’s announcement of launching its own services company at a USD 10 billion valuation with USD 4 billion raised is a structural threat to Indian IT outsourcers who compete for global AI implementation contracts. This is why Pranit Arora has been calling the IT sector a sell-on-rise play even as the rupee provides a mechanical margin boost.

However, today’s Nifty IT rally also demonstrates the other side of the AI equation: IT companies that are acquiring AI capabilities and pivoting their business models are being rewarded. Coforge’s USD 2.5 billion Encora acquisition for AI services is precisely the strategic response that differentiates winners from losers in the AI disruption era. Companies that pivot successfully toward AI implementation, CDMO-style managed services and proprietary AI tooling will gain market share; those that remain generic outsourcers will lose it. The Nifty IT index’s two-session rally reflects selective buying of the AI-capable IT names rather than a wholesale sector reversal.

Conclusion

The Nifty IT index’s 2.4 percent surge on 18 May 2026 against a broadly falling market is driven by three clear catalysts: the rupee’s crash to a record low of 96.17 providing a mechanical earnings tailwind for all dollar-revenue IT companies, Coforge’s exceptional Q4 FY26 results showing 30 percent revenue growth and a USD 1.75 billion order executable, and continued US technology sector strength. The Nifty IT rally extends the second straight session of IT sector outperformance. However, with the index still down 25.3 percent year-to-date and the Anthropic structural headwind intact, this is a bounce within a downtrend rather than a confirmed reversal. Track the live Nifty IT index and all constituent stock prices on Univest.

Disclaimer: Investment in the share market is subject to risk. This article is for informational and educational purposes only and does not constitute investment advice. Verify all numbers before investing. Consult a SEBI-registered advisor before making investment decisions.

FAQs

Why is the Nifty IT rising while the broader market is falling today?

Ans. The Nifty IT index is rising because the same force hurting the broader market — the rupee crashing to a record low of 96.17 — is actually beneficial for IT exporters whose dollar revenues become more valuable in rupee terms. Additionally, Coforge posted strong Q4 FY26 results with 30 percent revenue growth and US tech sector strength improved global risk appetite for Indian IT stocks.

What drove Coforge’s 10% surge in the Nifty IT session today?

Ans. Coforge surged 10 percent on Q4 FY26 results showing consolidated net profit of Rs 612.3 crore (up from Rs 261.2 crore), revenue growth of 30 percent to Rs 4,450.4 crore and an order executable of USD 1.75 billion entering FY27. The company also completed the USD 2.5 billion acquisition of AI firm Encora in April 2026, positioning it strongly in the AI services market.

Is the Nifty IT rally a trend reversal or a bounce?

Ans. The Nifty IT rally today is a counter-trend bounce from deeply oversold levels. The index is still down approximately 25.3 percent year-to-date in 2026 from its January peaks above 36,000. The Anthropic services company structural headwind and mixed earnings guidance from TCS and Wipro remain intact. Prudent investors should track the 28,500 to 29,000 resistance zone on the Nifty IT before concluding a trend reversal.

How does the rupee at 96.17 help Nifty IT stocks?

Ans. Indian IT companies earn 60 to 80 percent of their revenues in US dollars. When the rupee weakens, each dollar of US client revenue translates into more rupees on the P&L, mechanically improving revenue, margins and net profit in INR terms. At Rs 96 versus Rs 85 a year ago, IT companies are getting approximately 13 percent more rupees per dollar earned — a significant boost to reported earnings that directly drives the Nifty IT rally.