IT Stocks In Focus Today As TCS, Wipro Rise Up To 6% After Eight-Day Losing Streak

Information Technology stocks are in focus today as shares of TCS, Wipro and other technology companies rebounded on Wednesday, September 30, after eight consecutive sessions of losses. The Nifty IT index rose as much as 2.6% in morning trade, with TCS, Wipro and Coforge among the stocks seeing a sharp recovery.

TCS shares rose in early trade, while Wipro gained up to 6% and Coforge was also among the major gainers. The rebound comes after a sharp sell-off across the IT sector, which had pushed the Nifty IT index down more than 11% in September through Tuesday, compared with a fall of around 6% in the Nifty 50.

The recovery has brought IT stocks back into focus ahead of the Q2 FY27 earnings season. Investors are watching whether the rebound can hold and what companies say about demand, deal wins and revenue growth when they report their September-quarter results.

Jefferies, however, remains cautious on the sector, with the brokerage flagging concerns around the near-term growth outlook for Indian IT companies.

IT Stocks In Focus Today: TCS, Wipro, Coforge Lead Rebound

TCS, Wipro and Coforge were among the IT stocks that recovered on Wednesday after the sector's prolonged decline.

Wipro had been particularly weak in recent sessions and touched a fresh 52-week low of ₹156.79 on Tuesday. The stock had fallen 2.96% in the previous session before rebounding on Wednesday.

Other technology stocks also participated in the recovery. The move followed heavy selling across the sector, with Infosys, Wipro, KPIT Technologies and Tata Elxsi among the stocks that had touched 52-week lows during Tuesday's session.

The broader market also recovered on Wednesday after the Nifty 50 and Sensex had fallen around 1.8% each over the previous two sessions. The Nifty IT index was among the leading sectoral gainers in morning trade.

The sharp recovery therefore comes against a weak recent trend for the sector rather than after a prolonged period of gains.

Why Are IT Stocks Rising Today?

The immediate rebound follows eight straight sessions of losses in IT stocks, with investors buying into the sector after the recent decline. The fall had been driven by concerns around earnings growth, client spending and the outlook for technology services companies.

The timing of the recovery is also significant as the September-quarter earnings season approaches. Investors will get a clearer indication of demand conditions when companies report their Q2 FY27 numbers and provide commentary on deal activity, discretionary spending and their revenue outlook.

Jefferies remains cautious despite the recovery in share prices. The brokerage's view comes as investors assess whether the recent weakness in IT stocks reflects a temporary correction or a more sustained pressure on sector growth.

For the sector, the Q2 results will therefore be an important trigger. Management commentary on client budgets, large deal wins, pricing and the outlook for the second half of FY27 will be closely watched.

IT Stocks Q2 FY27 Outlook

The September quarter is expected to remain challenging for India's large IT companies. The recent fall in share prices has already reflected some of the concerns around slower growth, but the earnings season will show how these pressures are translating into actual revenue performance.

TCS, Infosys, Wipro, HCL Technologies and other major IT companies will report their quarterly numbers over the coming weeks. Investors will track whether revenue growth improves sequentially and whether companies retain or change their FY27 guidance.

The sector's performance on Wednesday provides some relief after eight sessions of losses, but the direction of IT stocks will ultimately depend on earnings, deal momentum and management commentary in the upcoming results season.

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