Indian IT shares surge as HCLTech beats forecasts and AI optimism lifts Nifty IT

Indian IT stocks jumped on Thursday, driving the Nifty IT index up 2.5% and extending a three‑day gain to 9%.

Market Move

HCLTech led the rally, rising 3.5%, while Tech Mahindra and TCS each climbed more than 3%. Infosys added 2.5% and Wipro, Mphasis and L&T moved between 1% and 2%. The rise came as investors digested September‑quarter earnings and looked for AI‑related revenue growth.

Earnings Highlights

HCLTech posted Q2FY27 revenue of $3.72 billion, up 2% from the previous quarter and 2.2% year‑on‑year, beating a Bloomberg poll estimate of $3.68 billion. Deal bookings hit $3.3 billion, a 27% YoY rise, and the firm lifted its FY27 revenue growth outlook to 2.5‑4% in constant‑currency terms. Tata Elxsi also beat estimates on both revenue and margins. Infosys CEO Salil Parekh said AI services made up more than 8% of its Q2 revenue and were growing at double‑digit sequential rates, with AI expected to drive almost half of the company's work in the next two to three years. TCS reported a net profit of about ₹13,884 crore, roughly 15% higher, and core‑operating revenue up 11.2% YoY. Its total contract value reached $9.6 billion and AI revenue was $3.1 billion, just over 10% of total sales.

Context

A weaker rupee and better‑than‑expected earnings boosted sentiment, while analysts like V K Vijayakumar of Geojit Investments noted that a pull‑back in global AI stocks and US inflation concerns could curb foreign outflows and support Indian IT shares.