Nifty IT Surges 11.7% In Biggest Weekly Rally Since 2008 As Earnings Recovery Boosts Investor Sentiment
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The Nifty IT index surged 11.7% in its biggest weekly rally since 2008, supported by strong quarterly earnings, attractive valuations and renewed investor interest in Indian IT stocks.
Indian IT stocks recorded their strongest weekly rally in 18 years, as the Nifty IT index climbed 11.7% during the week ended 16 October. The rebound came as investors reassessed the outlook for traditional software services companies amid a sell-off in global AI-linked semiconductor stocks.
Better-than-expected September-quarter earnings, improving business prospects and attractive valuations helped lift sentiment.
IT Stocks Rally As AI-Linked Shares Face Pressure
The Nifty IT index rose 11.72% over the week, marking its biggest weekly gain since April 2008. On Friday, 16 October the index advanced 3.92% to close at 31,924.10.
The rally came as investors grew concerned about the returns from heavy investment in artificial intelligence. Falling semiconductor stocks across Asian markets also encouraged some investors to shift towards established Indian IT services companies.
Tech Mahindra, Tata Consultancy Services (TCS), HCLTech, Infosys and Wipro were among the major IT stocks that benefited from the recovery. Tech Mahindra was one of the strongest performers, supported by renewed buying interest across the sector.
Earnings Recovery And Rupee Strength Support Sentiment
The latest results have offered some relief to a sector that has faced concerns over AI-driven disruption, slower growth and pressure on earnings. Indian IT companies are showing signs of stabilisation after nearly two years of cost-cutting and subdued business expansion.
Quarterly revenue growth has remained modest, but improving deal activity and management commentary have helped restore investor confidence. Market participants are also watching whether stronger earnings can sustain the recovery beyond the immediate rally.
The broader market also posted gains during the week. The Nifty 50 advanced 2.78%, while the Sensex rose 3.11%. The IT sector was a major contributor to the benchmark indices' performance.
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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