Information technology shares price movement Shares of information technology (IT) companies extended their upward movement, with the Nifty IT index quoting higher for the fourth straight trading day as industry majors reported in-line or strong September quarter (Q2FY27) earnings.
In the past six trading days, the Nifty IT index rallied 14 per cent after IT giant, Tata Consultancy Services (TCS) declared its Q2 results. IT index quoted at its highest level since August 12, 2026. At 10:12 AM on Friday, the Nifty IT index was top gainer among sectoral indices, up 2.8 per cent, as compared to 0.32 per cent rise in the Nifty 50.
Among individual stocks, Tech Mahindra surged 7 per cent to ₹1,769 on the NSE in intraday deals after the company reported strong Q2 results. The stock hit a 52-week high of ₹1,854 on February 3, 2026. Wipro’s share price rallied 6 per cent to ₹185.14 as management highlighted a strong pipeline, particularly in the BFSI and Technology sectors, alongside increasing opportunities in AI-led transformation.
Infosys and TCS soared 4 per cent each; while Oracle Financial Services, HCL Technologies, LTM and Mphasis were up between 2 per cent and 3 per cent. In the past six trading days, TCS, Tech Mahindra, Wipro, Infosys and HCL Tech were up in the range of 16 per cent to 19 per cent.
TechM delivered a strong quarter with broad-based growth across geographies and most verticals. Continued margin expansion and healthy deal momentum, supported by the ramp-up of large deals, including the Orange deal in the communication vertical. Management reiterated its FY27 earnings before interest tax (EBIT) margin target of 15 per cent and highlighted a continued focus on above-industry growth, supported by AI-led transformation and productivity gains under Project Helix.
Client adoption is progressing beyond AI pilots towards larger-scale implementations, with the company expecting to introduce AI revenue disclosures in H2FY27. However, manufacturing remains a near-term watch point as revenue declined 3.9 per cent quarter-on-quarter (QoQ) following accelerated execution of a large European automotive programme in the previous quarter, and management expects a further, albeit much smaller ~50 bps, sequential revenue headwind in Q3.
Wage hikes also partly offset margin expansion, although management believes further gross-margin improvement remains achievable, ICICI Securities said in a note. The outlook is supported by strong deal momentum and operational execution, with management expecting normal H2 seasonality and no unusual furloughs.
Overall, the quarter strengthens confidence in the turnaround, although continued execution will be key to achieving the FY27 margin target, the brokerage firm said. Meanwhile, Wipro’s Q2FY27 EBIT margin at 16.4 per cent was up 40bps q-q driven by operational efficiencies and the rupee’s depreciation, offset by ongoing AI investments.
This was largely in line with the estimate of 16.5 per cent, analysts at Nomura said. The brokerage firm forecasts an EBIT margin of 16.4-17 per cent in FY27-28F. Analysts raised FY27-28F EPS by 5.2 per cent-5.5 per cent) driven by lower share count due to recently-concluded buyback.
The brokerage firm increased the target price to ₹200 (from ₹190), set at an unchanged 14x FY28F EPS. Why are Indian equities outperforming the market? India has been significantly outperforming other markets this week with 780.75 point gains in Nifty 50 in the last four days.
The index bounced back 4.3 per cent or 964.1 points from its 52-week low of 22,179.90 touched on October 8, 2026. This outperformance is being driven by the weakening of the AI trade, expectations of some major new changes in the long-term capital gains (LTCGs) taxation in the coming Budget and the positive fallout from the Q2 results which have been better-than-expected, so far, and are likely to maintain the positive trend, said V K Vijayakumar, Chief Investment Strategist, Geojit Investments.
The good results from the IT majors and the positive management commentary have led to a smart 9 per cent revival in the IT index contributing to the resilience of the Nifty. Another positive development is the sharp decline in the US 10-year bond yield to 5.07 per cent.
But chances are that they will continue to sell so long as the 10-year yield is above 5 per cent and Brent trades above $100. What we are witnessing in the market now is value buying in large-caps. Short-covering in this segment can accelerate this trend," added V K Vijayakumar.
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