₹82,500 Crore Added: Indian IT Stocks Rally 8% in Three Sessions as HCLTech, TCS Lead Gains

Indian IT stocks have added ₹82,500 crore in market capitalisation over three sessions, with the Nifty IT index rising 8%. HCLTech gained 12%, Tata Consultancy Services (TCS) rose 11%, and Tech Mahindra advanced 10.6% during the period.

The rally follows a global selloff in AI linked stocks. Better than expected earnings and improving sentiment around technology services demand have also supported the recovery.

IT stocks rally across the sector

Several major IT stocks recorded strong gains over the three sessions. HCLTech led the gains, followed by TCS and Tech Mahindra.

Company or index	Gain
HCLTech	12%
TCS	11%
Tech Mahindra	10.6%
Infosys	9%
Wipro	7%
Nifty IT index	8%

The gains have lifted the sector's market value, although uncertainty around AI spending and global technology demand remains.

Why are IT stocks rising?

Global AI concerns shift investor sentiment

Concerns about high AI valuations, rising investment costs and uncertain returns have weighed on AI linked stocks in the US and Asia. Some market participants believe this correction could encourage foreign institutional investors to reconsider their exposure to Indian equities.

However, any shift in foreign investment towards Indian IT stocks remains uncertain.

Accenture outlook supports technology services demand

Accenture CEO Julie Sweet said demand created by AI could exceed the demand replaced by the technology. Her comments helped ease concerns that AI tools could reduce demand for traditional consulting and IT services.

Accenture expects mid single digit revenue growth in 2027 and 2028, followed by mid to high single digit growth in 2029. Investors track its outlook for signals about global technology services demand.

TCS earnings add support to the rally

Tata Consultancy Services reported a 15% year on year increase in consolidated net profit to ₹13,884 crore in Q2, compared with ₹12,075 crore a year earlier.

Revenue in constant currency terms rose 0.5% quarter on quarter. TCS reported an operating margin of 24% and a net margin of 19%. The company also declared a second interim dividend of ₹12 per share for FY27.

The earnings report has added support to the sector's recovery, as investors assess whether IT companies can maintain growth amid changes in AI adoption and client spending.

Will the IT stock rally continue?

The near term outlook depends on earnings, global technology spending and the pace at which businesses adopt AI. Concerns about the cost of AI infrastructure and the returns from these investments could continue to affect valuations.

Krishna Sanghavi, CIO Equity at Mahindra Manulife Mutual Fund, said uncertainty around AI's commercial viability could ease concerns about Indian IT companies if it slows the technology's rollout.

Gaurav Garg of Lemonn Market Desk said improving sentiment could support IT stocks in the near term, although profit booking and volatility remain possible after the recent gains.

Investors will watch upcoming earnings, global technology spending and signs of sustained demand for AI related services to assess whether the recovery can continue.