IT Index Climbs 11.7% on Strong September Earnings

Nifty IT index surged 11.72% this week, marking its strongest weekly rise in 18 years. The gain pushed the index back above the 30,000 level and touched an eight‑month high. Over the week, six of the ten stocks in the index posted gains exceeding 10 per cent. Tech Mahindra led with an 18.7% rise, closing higher for four consecutive sessions. Tata Consultancy Services also climbed 18.7%, followed by HCL Technologies up 17.3%, Infosys up 16.5%, Wipro up 16.4% and L&T Technology Services up 12.1%. The rally was sparked by September‑quarter earnings that beat expectations across the major firms. Stronger‑than‑expected revenue and robust deal wins at Tech Mahindra and Wipro, as well as AI‑related revenue growth at HCL, eased fears that artificial‑intelligence disruptions would curb demand. The sector had been weighed down by worries over AI impact, high interest rates and foreign institutional selling, which had driven many stocks to multi‑year lows. The recent results helped the index recover almost half of its 32% loss from earlier in the year, cutting the year‑to‑date decline to 15.7 per cent. The broader market also benefited, with the Nifty posting its best weekly performance in six months. Investor confidence appears to be returning as valuations are reassessed and earnings outlook improves.

Context

The Nifty IT index tracks the performance of India’s large‑cap software companies, so a sharp move often reflects changes in global tech spending and domestic corporate demand.