TCS, Infosys, HCLTech, Wipro, TechM: IT Stocks Gain Up to 3.5% Today; Nifty IT Jumps 9% in 3 Days: What’s Driving the Rally?
- October 15, 2026
- Posted by: Chaitanya Auti
- Category: News
IT stocks rallied on Thursday 15 Oct 2026, with Nifty IT up about 2.5% and about 9% in three sessions (8.89% since Tuesday). Tech Mahindra rose 3.4%, HCLTech 3.1%, TCS 2.8% and Infosys 2.6%. Nifty IT gained about 5.2% on Tuesday, its best day in over 17 months. TCS profit rose about 15% to Rs 13,884 crore. Wipro and Tech Mahindra report today.
Quick Answer
IT stocks rallied on 15 October 2026, lifting the Nifty IT index about 2.5% and extending its three-session gain to roughly 9%, after a 5.2% jump on Tuesday that was its best day in over 17 months. Analysts point to three drivers: a rotation away from the AI hardware trade, Q2 results from TCS and HCLTech that were in line with no negative surprise, and valuations of 12 to 18 times earnings with dividend yields of 3% to 5%. The headline also cites a weaker rupee, but the rupee actually gained on the day, so I treat that as unverified. One analyst calls it an earnings-led relief rally and not a confirmed turnaround.
The rally in IT stocks is the main story on Dalal Street on Thursday. After a long period of underperformance, IT stocks such as TCS, Infosys, HCLTech, Wipro and Tech Mahindra have all jumped, and the Nifty IT index has risen about 9% in three sessions.
This guide covers the size of the move, the three drivers, the TCS and HCLTech results, how stocks have performed over a week, the risks and the levels to watch. Sources differ on some figures for IT stocks, and I flag those.
A rally of this size in IT stocks raises the question of whether it can last, and the sections below treat that as an open question.
Click Here – Get Free Investment Predictions
IT Stocks: How Big Is the Rally?
| Item | Level | Note |
|---|---|---|
| Nifty IT on 15 Oct | Up about 2.5% to 2.6% | Top sector; the Nifty 50 was up 1.29% at 10:36 am |
| Three-session gain | About 8.89% to 9% | Since Tuesday; reports of 8.3% to 9% differ by time of day |
| Tuesday 13 Oct | Up about 5.2% | Best single day in over 17 months, led by HCLTech and TCS |
| Nifty IT intraday high on 14 Oct | 30,377.15 | Up 1.8% from the previous close of 29,830.10 |
| Neckline resistance | About 32,000 | About 5.3% above 30,377 (my calculation) |
| Constituents higher | 8 of 10 | At 10:36 am |
One report counts the gain as 9% over five days to 14 October, while others count 9% in three sessions to 15 October. The time windows differ, which is why the figures vary, and both agree that the rally in IT stocks is sharp.
Risk: After a 9% jump in three sessions, IT stocks can give back some of the gain quickly if sentiment turns.
Screen IT stocks on the Univest Screener
IT Stocks Today: Who Gained and by How Much
| Stock | Move on 15 Oct (morning) | One week to 14 Oct | 14 Oct intraday high |
|---|---|---|---|
| Tech Mahindra | Up 3.4% | Up 4.4% | Rs 1,566.70 |
| HCLTech | Up 3.1% | Up 12.8% | Rs 1,453.70 |
| TCS | Up 2.8% | Up 11% | Rs 2,335.80 |
| Infosys | Up 2.6% | Up 9.6% | Rs 1,089.80 |
| Wipro | Not reported | Up 7.6% | Rs 171.80 |
| LTM | Not reported | Up 8.8% | Rs 4,308 |
| Coforge | Not reported | Up 6.2% | Rs 1,964.90 |
| Persistent Systems | Not reported | Up 8% | Rs 6,078 |
The headline says IT stocks gained up to 3.5%, while the morning data I found shows a top gain of 3.4% for Tech Mahindra, so the 3.5% is probably a later reading. The one week returns are to 14 October and do not include Thursday’s gains.
HCLTech and TCS have the largest weekly gains among the large cap IT stocks, which matches the results driven start to the rally.
Risk: Stocks that have risen 10% or more in a week can be volatile around results.
Driver 1: The Reversal of the AI Trade
| Point | Detail |
|---|---|
| View | Sunny Agrawal of SBI Securities cites rising debt in AI related businesses, rising bond yields and profit booking in the US and Korea |
| Second view | Narendra Solanki of Anand Rathi calls Indian IT an anti-AI trade |
| Evidence | AI chip stocks such as SK Hynix and Samsung fell from their highs on valuation and spending worries |
| Counter view | Ponmudi R of Enrich Money says AI is becoming a revenue opportunity and not only a disruption risk |
The first driver is rotation. As investors sell expensive AI hardware stocks, money has moved to IT stocks, meaning services companies that were seen as AI losers. The Nasdaq fell 1.88% on Wednesday, yet IT stocks rose, which fits the idea of a switch within technology.
These are analyst opinions, and the article they come from notes that they are not the publisher’s views.
Risk: If the AI hardware trade recovers, money could flow back and reverse the rotation.
Driver 2: Q2 Results That Were In Line
| Item | TCS | HCLTech |
|---|---|---|
| Profit growth | About 15% to Rs 13,884 crore | 21.2% in one report; about 11% in another |
| Revenue growth | 11.2% year on year (core operations) | 11.5% year on year and 3% sequentially |
| Margin | Not stated here | EBIT margin of 18.2% |
| Order wins | Total contract value of 9.6 billion dollars | Not stated here |
| AI | Annualised AI revenue of 3.1 billion dollars, over 10% of revenue | Not stated here |
| Guidance | Not stated here | FY27 revenue guidance cut to 2.5% to 4% in constant currency (one report) |
The two reports disagree on HCLTech’s profit growth, 21.2% against about 11%, so I show both. The one that mentions a guidance cut says earnings were in line to slightly ahead. Infosys CEO Salil Parekh said AI services were over 8% of Q2 revenue, growing at a double digit rate from the previous quarter.
Tata Elxsi’s results, which beat estimates on revenue and margins, also helped sentiment in IT stocks. The rally in IT stocks shows relief that results had no major surprises, because the market had feared worse.
Risk: A cut in guidance, as reported for HCLTech, shows that growth is still modest.
Download the Univest iOS App or Univest Android App to track IT stocks and set price alerts.
Driver 3: Valuations and Dividend Yields
| Point | Detail |
|---|---|
| Price to earnings | Most large traditional IT services firms trade at 12 to 18 times |
| Dividend yields | 3% to 5% |
| Cash flows | Described as robust |
| Rupee | The headline says weaker; the rupee gained 24 paise to 94.92 on the day, but it is weak by level at about 95 per dollar |
Low relative to history is a common reason for a bounce, but valuation alone does not start a rally. The weaker rupee argument is mixed: a rupee near 95 per dollar helps exporters over time, but on 15 October it strengthened, so it was not the trigger for that day.
Risk: A low multiple for IT stocks can stay low if growth stays weak, so valuation is not a reason on its own.
Is the IT Stocks Rally Sustainable?
The next question for IT stocks is whether the move can last beyond the results week.
| Argument for | Argument against |
|---|---|
| Results without negative surprises | HCLTech cut its FY27 revenue guidance |
| AI revenue is growing, with TCS at 3.1 billion dollars annualised | One analyst calls it a relief rally, not a confirmed turnaround |
| Valuations of 12 to 18 times and yields of 3% to 5% | US inflation rose to 3.7% from 3.4%, raising rate hike fears |
| A possible breakout if Nifty IT closes above 32,000 | Foreign investors sold Rs 1,857.44 crore on Wednesday |
| Rotation out of AI hardware | Wipro and Tech Mahindra results on 15 October could disappoint |
Ponmudi R of Enrich Money says sustained upside needs stronger US technology spending, steady deal conversion and better revenue growth. Vipin Kumar of Globe Capital says a decisive close above 32,000 would confirm an inverted head and shoulders breakout, while the index moves gradually towards it.
Risk: A technical breakout call depends on a close above 32,000, which has not happened yet.
What to Watch Next for IT Stocks
- Wipro and Tech Mahindra results, which can move IT stocks, and guidance on 15 October
- Infosys and HCLTech guidance after the Q2 numbers
- Nifty IT against 30,377 and the 32,000 neckline
- US inflation, bond yields and the Fed meeting on 28 October
- Foreign investor flows into IT stocks and the rupee near 95 per dollar
Conclusion
IT stocks have rallied about 9% in three sessions on a rotation out of AI hardware, in-line results and low valuations. The weaker rupee in the headline is not supported by the day’s data, and the rally needs growth and guidance to hold.
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 are IT stocks rising today?
Ans. Analysts cite a rotation away from the AI hardware trade, Q2 results from TCS and HCLTech that were in line, and valuations of 12 to 18 times earnings with dividend yields of 3% to 5%.
How much has Nifty IT risen?
Ans. About 2.5% on 15 October 2026 and about 9% in three sessions. It rose about 5.2% on Tuesday, its best day in over 17 months.
Which IT stocks gained the most on 15 October?
Ans. Tech Mahindra rose 3.4%, HCLTech 3.1%, TCS 2.8% and Infosys 2.6% in the morning.
What were the TCS Q2 results?
Ans. Profit rose about 15% to Rs 13,884 crore, revenue grew 11.2% in core operations, total contract value was 9.6 billion dollars and annualised AI revenue was 3.1 billion dollars.
Did HCLTech cut its guidance?
Ans. One report says HCLTech lowered its FY27 revenue guidance to 2.5% to 4% in constant currency. Reports differ on its profit growth, 21.2% against about 11%.
Is the rupee behind the IT rally?
Ans. The headline cites a weaker rupee, but the rupee gained 24 paise on 15 October. A rupee near 95 per dollar helps exporters over time, so it is a background factor and not the trigger.
Is the rally sustainable?
Ans. It depends on US technology spending, deal conversion and revenue growth. One analyst calls it an earnings-led relief rally and not a confirmed turnaround.
Is this article investment advice?
Ans. No. It is educational and not a recommendation to buy or sell.