India's battered IT stocks head for best week in 18 years on earnings boost

Persistent Systems

16/10/2026 08:54

Oct 16 (Reuters) - Indian IT stocks were on course for their biggest weekly gain in 18 years on Friday, buoyed by stronger-than-expected quarterly revenue from major software exporters and a global selloff in AI-linked stocks that prompted investors to turn to Indian shares.

     Here are some details:
The Nifty IT index .NIFTYIT has risen 10.4% so far this week, putting it on track for its biggest weekly percentage gain since the week ended October 31, 2008, when it climbed 11.24%
The rally has outpaced all other major sectoral indexes and the benchmark Nifty 50 .NSEI, which has gained 2.6% this week
"Markets are witnessing a sharp rebound, supported by a resurgence in IT stocks following strong quarterly results," even as other Asian markets plunged on a selloff in AI-linked stocks, said Ankur Punj, managing director of Equirus Wealth
Tech Mahindra TEML.NS jumped 8% on Friday after its second-quarter revenue beat expectations, aided by robust deal wins
Wipro WIPR.NS rose 5.8% after reporting stronger-than-expected quarterly revenue, with signs that delayed large deals could support growth in the coming quarters
The gains come as Indian IT services companies navigate concerns about artificial intelligence's potential impact on traditional outsourcing businesses
As of 1:00 p.m. IST, Infosys INFY.NS gained 3.9% and Tata Consultancy Services TCS.NS rose 4.2%, while HCLTech HCLT.NS added 1%; Persistent Systems PERS.NS bucked the trend, falling 3.3% after brokerages flagged margin pressures from higher amortisation costs
Despite this week's sharp rebound, the IT index remains down about 16% this year, underscoring the pressure on the sector before the latest rally

 (Reporting by Surbhi Misra in Bengaluru; Editing by Mrigank Dhaniwala)
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