IT Stocks Rally Up To 3% Despite Weak Market Sentiment; Infosys And HCLTech Gain Ahead Of Q2 Earnings
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IT stocks rose up to 3% on Thursday despite weak broader market sentiment, with Infosys and HCLTech among the key gainers. Read more.
IT stocks jumped up to 3% on Thursday, 8 October 2026. With these gains, the Nifty IT index rose nearly 2%, making it the top-performing sectoral index. However, most of the other sectoral indices remained in the red.
HCL Technologies and Infosys gained nearly 2% each. Mphasis, Coforge, LTIMindtree, Tech Mahindra, Persistent Systems and Wipro advanced 1-2%.
This rise in IT stocks made investors turn their attention to the September-quarter earnings season. The gains came despite weak market sentiment.
The following were the trading prices of some major IT stocks on the National Stock Exchange (NSE) at 12 pm on 8 October:
Infosys shares: ₹1,002.05, up 1.01%
HCL Tech shares: ₹1,195.80, up 0.91%
Mphasis shares: ₹2,352.80, up 2.79%
Coforge shares: ₹1,852.20, up 1.65%
Tech Mahindra shares: ₹1,509.50, up 1.23%
Persistent Systems shares: ₹5,545, up 0.69%
Wipro shares: ₹161.45, up 1.16%
Dollar Support And AI Concerns For IT Stocks
The dollar's slight easing while remaining near multi-month highs supported the sector. Indian IT services companies generate a significant share of revenue from the US. So a stronger dollar can increase the rupee value of their dollar-denominated earnings.
Artificial intelligence (AI) concerns are also influencing investor sentiment. Indian IT services companies are increasingly being viewed as an “anti-AI” trade amid worries about the technology's impact on traditional services.
At the same time, currency movements could provide some support to margins during the quarter. This combination has helped improve sentiment towards the sector despite broader market weakness.
Q2 Earnings Outlook Remains Cautious For IT Sector
The broader IT sector is still expected to report modest sequential growth. Indian IT services firms see cautious client spending and slower discretionary projects. Investors are also pondering if AI will create new sources of income or apply billing pressure to traditional services.
Indian IT services providers are expected to see aggregate sequential revenue increase of 1.7% in constant-currency terms. Currency tailwinds are projected to support earnings before interest, tax, depreciation and amortisation (EBITDA) margins to improve by 30 basis points (bps) quarter-on-quarter (QoQ).
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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