HCLTech, TCS And Infosys Shares Surge Up To 11% In Two Days As Nifty IT Index Moves Above 30,000 Points

Indian IT shares have bounced back sharply, with HCLTech, Tata Consultancy Services (TCS) and Infosys among the biggest gainers over the past two trading sessions. The recovery comes as investors reassess the risks posed by artificial intelligence (AI) and the returns expected from the massive investments being made in the technology.

The Nifty IT index has added more than 2,000 points in two sessions, crossing 30,000 points on Wednesday for the first time in nearly a month. HCLTech has gained close to 11% since its second-quarter results, while TCS and Infosys have risen between 6% and 10%.

The gains mark a shift in sentiment after a difficult year for the sector. Investors had been concerned that AI tools could eat into demand for traditional software and IT services. Now, questions about whether AI investments will deliver the promised returns are also entering the picture.

AI Concerns Take A Different Turn

Indian IT stocks have spent much of the year under pressure as global technology companies increased spending on AI infrastructure. Investors worried that businesses could use the new tools to automate work currently handled by software developers and IT service providers.

The fear of disruption has been dubbed the “SaaSpocalypse”, referring to the potential damage AI could cause to software-as-a-service businesses. Bloomberg cited Jeffrey Favuzza, of Jefferies' equity trading desk, in connection with the term.

The debate has since widened beyond the threat AI poses to existing businesses. Investors are also questioning whether the money pouring into AI infrastructure will translate into profits at the scale expected.

Michael Burry, who became widely known for predicting the 2008 housing crisis, has cautioned that markets are underestimating the risks surrounding AI. Such concerns have added another dimension to the recent movement in technology stocks.

For Indian IT companies, the shift in sentiment could prove helpful if businesses take longer to adopt AI or scale back spending on projects that struggle to show commercial returns. It does not remove the risk of disruption, but it changes what investors are watching.

HCLTech Earnings Trigger Fresh Buying

HCLTech's latest quarterly performance has given investors a more immediate reason to return to IT stocks. The company reported a 21% year-on-year rise in consolidated net profit to ₹5,132 crore in the second quarter of FY27.

Higher AI-related revenue and an improved growth outlook also helped the results find favour with the market. The positive response extended to other large IT stocks, including TCS and Infosys.

The gains in these heavyweight stocks have been enough to drive a sharp recovery in the Nifty IT index over just two sessions.

Can The IT Rally Continue?

The recent gains have improved sentiment, but the longer-term outlook remains tied to how AI changes the technology services business. The pace of adoption over the next two to three years will be important for both revenue growth and valuations across the Indian IT sector.

There is also a possible upside scenario for traditional IT firms. If concerns about AI's commercial viability lead companies to delay projects or become more cautious with spending, fears about the immediate impact on Indian IT services providers could ease.

For now, HCLTech's results have helped bring buyers back to the sector. Whether TCS, Infosys and other IT companies can sustain the recovery will depend in part on their own earnings and growth outlooks, as well as how the debate around AI spending develops.

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