{"id":310321,"date":"2026-10-15T11:53:13","date_gmt":"2026-10-15T06:23:13","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=310321"},"modified":"2026-10-15T11:53:13","modified_gmt":"2026-10-15T06:23:13","slug":"tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/","title":{"rendered":"TCS, Infosys, HCLTech, Wipro, TechM: IT Stocks Gain Up to 3.5% Today; Nifty IT Jumps 9% in 3 Days: What&#8217;s Driving the Rally?"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>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.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">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.<\/p>\n<\/p><\/div>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\">Click Here &#8211; Get Free Investment Predictions<\/a><\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#IT_Stocks_How_Big_Is_the_Rally\" title=\"IT Stocks: How Big Is the Rally?\">IT Stocks: How Big Is the Rally?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#IT_Stocks_Today_Who_Gained_and_by_How_Much\" title=\"IT Stocks Today: Who Gained and by How Much\">IT Stocks Today: Who Gained and by How Much<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Driver_1_The_Reversal_of_the_AI_Trade\" title=\"Driver 1: The Reversal of the AI Trade\">Driver 1: The Reversal of the AI Trade<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Driver_2_Q2_Results_That_Were_In_Line\" title=\"Driver 2: Q2 Results That Were In Line\">Driver 2: Q2 Results That Were In Line<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Driver_3_Valuations_and_Dividend_Yields\" title=\"Driver 3: Valuations and Dividend Yields\">Driver 3: Valuations and Dividend Yields<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Is_the_IT_Stocks_Rally_Sustainable\" title=\"Is the IT Stocks Rally Sustainable?\">Is the IT Stocks Rally Sustainable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#What_to_Watch_Next_for_IT_Stocks\" title=\"What to Watch Next for IT Stocks\">What to Watch Next for IT Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Why_are_IT_stocks_rising_today\" title=\"Why are IT stocks rising today?\">Why are IT stocks rising today?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#How_much_has_Nifty_IT_risen\" title=\"How much has Nifty IT risen?\">How much has Nifty IT risen?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Which_IT_stocks_gained_the_most_on_15_October\" title=\"Which IT stocks gained the most on 15 October?\">Which IT stocks gained the most on 15 October?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#What_were_the_TCS_Q2_results\" title=\"What were the TCS Q2 results?\">What were the TCS Q2 results?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Did_HCLTech_cut_its_guidance\" title=\"Did HCLTech cut its guidance?\">Did HCLTech cut its guidance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Is_the_rupee_behind_the_IT_rally\" title=\"Is the rupee behind the IT rally?\">Is the rupee behind the IT rally?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Is_the_rally_sustainable\" title=\"Is the rally sustainable?\">Is the rally sustainable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-percent-today-nifty-it-jumps-9-percent-in-3-days-whats-driving-rally\/#Is_this_article_investment_advice\" title=\"Is this article investment advice?\">Is this article investment advice?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"IT_Stocks_How_Big_Is_the_Rally\"><\/span><strong>IT Stocks: How Big Is the Rally?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Item<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Level<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Note<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Nifty IT on 15 Oct<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 2.5% to 2.6%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Top sector; the Nifty 50 was up 1.29% at 10:36 am<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Three-session gain<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 8.89% to 9%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Since Tuesday; reports of 8.3% to 9% differ by time of day<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Tuesday 13 Oct<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 5.2%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Best single day in over 17 months, led by HCLTech and TCS<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Nifty IT intraday high on 14 Oct<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">30,377.15<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 1.8% from the previous close of 29,830.10<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Neckline resistance<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 32,000<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 5.3% above 30,377 (my calculation)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Constituents higher<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">8 of 10<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">At 10:36 am<\/td>\n<\/tr>\n<\/table>\n<p>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.<\/p>\n<p><strong>Risk:<\/strong> After a 9% jump in three sessions, IT stocks can give back some of the gain quickly if sentiment turns.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/screeners\">Screen IT stocks on the Univest Screener<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"IT_Stocks_Today_Who_Gained_and_by_How_Much\"><\/span><strong>IT Stocks Today: Who Gained and by How Much<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Stock<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Move on 15 Oct (morning)<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">One week to 14 Oct<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">14 Oct intraday high<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Tech Mahindra<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 3.4%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 4.4%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 1,566.70<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">HCLTech<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 3.1%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 12.8%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 1,453.70<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">TCS<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 2.8%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 11%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 2,335.80<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Infosys<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 2.6%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 9.6%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 1,089.80<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Wipro<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not reported<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 7.6%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 171.80<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">LTM<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not reported<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 8.8%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 4,308<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Coforge<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not reported<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 6.2%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 1,964.90<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Persistent Systems<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not reported<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up 8%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 6,078<\/td>\n<\/tr>\n<\/table>\n<p>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&#8217;s gains.<\/p>\n<p>HCLTech and TCS have the largest weekly gains among the large cap IT stocks, which matches the results driven start to the rally.<\/p>\n<p><strong>Risk:<\/strong> Stocks that have risen 10% or more in a week can be volatile around results.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Driver_1_The_Reversal_of_the_AI_Trade\"><\/span><strong>Driver 1: The Reversal of the AI Trade<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Point<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Detail<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">View<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Sunny Agrawal of SBI Securities cites rising debt in AI related businesses, rising bond yields and profit booking in the US and Korea<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Second view<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Narendra Solanki of Anand Rathi calls Indian IT an anti-AI trade<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Evidence<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">AI chip stocks such as SK Hynix and Samsung fell from their highs on valuation and spending worries<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Counter view<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Ponmudi R of Enrich Money says AI is becoming a revenue opportunity and not only a disruption risk<\/td>\n<\/tr>\n<\/table>\n<p>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.<\/p>\n<p>These are analyst opinions, and the article they come from notes that they are not the publisher&#8217;s views.<\/p>\n<p><strong>Risk:<\/strong> If the AI hardware trade recovers, money could flow back and reverse the rotation.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Driver_2_Q2_Results_That_Were_In_Line\"><\/span><strong>Driver 2: Q2 Results That Were In Line<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Item<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">TCS<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">HCLTech<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Profit growth<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 15% to Rs 13,884 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">21.2% in one report; about 11% in another<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Revenue growth<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">11.2% year on year (core operations)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">11.5% year on year and 3% sequentially<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Margin<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not stated here<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">EBIT margin of 18.2%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Order wins<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Total contract value of 9.6 billion dollars<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not stated here<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">AI<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Annualised AI revenue of 3.1 billion dollars, over 10% of revenue<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not stated here<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Guidance<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not stated here<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">FY27 revenue guidance cut to 2.5% to 4% in constant currency (one report)<\/td>\n<\/tr>\n<\/table>\n<p>The two reports disagree on HCLTech&#8217;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.<\/p>\n<p>Tata Elxsi&#8217;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.<\/p>\n<p><strong>Risk:<\/strong> A cut in guidance, as reported for HCLTech, shows that growth is still modest.<\/p>\n<p style=\"margin-top:24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&#038;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track IT stocks and set price alerts.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Driver_3_Valuations_and_Dividend_Yields\"><\/span><strong>Driver 3: Valuations and Dividend Yields<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Point<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Detail<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price to earnings<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Most large traditional IT services firms trade at 12 to 18 times<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Dividend yields<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">3% to 5%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Cash flows<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Described as robust<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rupee<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">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<\/td>\n<\/tr>\n<\/table>\n<p>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.<\/p>\n<p><strong>Risk:<\/strong> A low multiple for IT stocks can stay low if growth stays weak, so valuation is not a reason on its own.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_the_IT_Stocks_Rally_Sustainable\"><\/span><strong>Is the IT Stocks Rally Sustainable?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The next question for IT stocks is whether the move can last beyond the results week.<\/p>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Argument for<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Argument against<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Results without negative surprises<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">HCLTech cut its FY27 revenue guidance<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">AI revenue is growing, with TCS at 3.1 billion dollars annualised<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">One analyst calls it a relief rally, not a confirmed turnaround<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Valuations of 12 to 18 times and yields of 3% to 5%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">US inflation rose to 3.7% from 3.4%, raising rate hike fears<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A possible breakout if Nifty IT closes above 32,000<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Foreign investors sold Rs 1,857.44 crore on Wednesday<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rotation out of AI hardware<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Wipro and Tech Mahindra results on 15 October could disappoint<\/td>\n<\/tr>\n<\/table>\n<p>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.<\/p>\n<p><strong>Risk:<\/strong> A technical breakout call depends on a close above 32,000, which has not happened yet.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_to_Watch_Next_for_IT_Stocks\"><\/span><strong>What to Watch Next for IT Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Wipro and Tech Mahindra results, which can move IT stocks, and guidance on 15 October<\/li>\n<li>Infosys and HCLTech guidance after the Q2 numbers<\/li>\n<li>Nifty IT against 30,377 and the 32,000 neckline<\/li>\n<li>US inflation, bond yields and the Fed meeting on 28 October<\/li>\n<li>Foreign investor flows into IT stocks and the rupee near 95 per dollar<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>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&#8217;s data, and the rally needs growth and guidance to hold.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> 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).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Why_are_IT_stocks_rising_today\"><\/span><strong>Why are IT stocks rising today?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> 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%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_much_has_Nifty_IT_risen\"><\/span><strong>How much has Nifty IT risen?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> 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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Which_IT_stocks_gained_the_most_on_15_October\"><\/span><strong>Which IT stocks gained the most on 15 October?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Tech Mahindra rose 3.4%, HCLTech 3.1%, TCS 2.8% and Infosys 2.6% in the morning.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_were_the_TCS_Q2_results\"><\/span><strong>What were the TCS Q2 results?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> 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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Did_HCLTech_cut_its_guidance\"><\/span><strong>Did HCLTech cut its guidance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> 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%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_the_rupee_behind_the_IT_rally\"><\/span><strong>Is the rupee behind the IT rally?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> 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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_the_rally_sustainable\"><\/span><strong>Is the rally sustainable?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> 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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_this_article_investment_advice\"><\/span><strong>Is this article investment advice?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> No. It is educational and not a recommendation to buy or sell.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Why are IT stocks rising today?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"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%.\"}},{\"@type\":\"Question\",\"name\":\"How much has Nifty IT risen?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"About 2.5% on 15 October 2026 and about 9% in three sessions. 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Reports differ on its profit growth, 21.2% against about 11%.\"}},{\"@type\":\"Question\",\"name\":\"Is the rupee behind the IT rally?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"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.\"}},{\"@type\":\"Question\",\"name\":\"Is the rally sustainable?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"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.\"}},{\"@type\":\"Question\",\"name\":\"Is this article investment advice?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. It is educational and not a recommendation to buy or sell.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>IT stocks gained up to 3.5% as Nifty IT rose 9% in 3 days. See the 3 drivers, TCS and HCLTech results, the rupee claim and the risks to the rally.<\/p>\n","protected":false},"author":38,"featured_media":310320,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[11499,3791,1133,787,1241,614,4570],"class_list":["post-310321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-hcltech","tag-infosys","tag-it-stocks","tag-nifty-it","tag-tcs","tag-tech-mahindra","tag-wipro"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["310320"],"rank_math_title":["IT Stocks Rally: Nifty IT Up 9% in 3 Days, Why?"],"rank_math_description":["IT stocks gain up to 3.5% on 15 Oct 2026 as Nifty IT rises 9% in 3 days. See the 3 drivers, TCS and HCLTech results, the weak rupee claim, the risks and levels to watch."],"rank_math_focus_keyword":["IT stocks"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/10\/tcs-infosys-hcltech-wipro-techm-it-stocks-gain-up-to-3-5-today-nifty-it-jumps-9.webp","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/310321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=310321"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/310321\/revisions"}],"predecessor-version":[{"id":310322,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/310321\/revisions\/310322"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/310320"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=310321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=310321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=310321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}