IT stocks defy market correction: TCS, Infosys, TechM, HCLTech, Wipro rally up to 23% in a month

After a sharp correction driven by fears of artificial intelligence (AI)-led disruption and uncertain technology spending, Indian IT stocks are staging a comeback. Over the past month, shares of Tata Consultancy Services (TCS), HCLTech, Tech Mahindra, Wipro and Infosys have rallied by up to 23%, defying weakness in the broader market.

TCS has led the gains, rising 23.16% over the past one month, followed by Wipro at 16.55%, Tech Mahindra at 15.88%, Infosys at 14.77% and HCLTech at 14.47%. In comparison, the Sensex has fallen around 2% and the Nifty 50 about 3.5% over the period under review.

The Nifty IT index has gained 14.37% in a month and around 16% in October, touching an eight-month high amid value buying after a sharp correction earlier this year. However, it remains down 14.67% in 2026, reflecting lingering concerns over AI's impact and global technology spending.

The rally continued on Friday, with the Nifty IT index rising 1% to 32,406.15. TCS gained 2.58%, Infosys rose 1.38%, Wipro advanced 1.07% and HCLTech climbed 0.99%. Tech Mahindra edged down 0.06%.

Earnings resilience supports the rebound

The September-quarter earnings have helped improve sentiment. TCS reported a 7.6% year-on-year rise in consolidated net profit to ₹13,884 crore, while revenue grew 11.2% to ₹73,188 crore. Tech Mahindra's net profit increased 32.7% to ₹1,585.6 crore, with revenue rising 12.6% to ₹15,711.9 crore. HCLTech reported a 21.18% increase in consolidated net profit attributable to owners to ₹5,132 crore, while revenue grew 11%.

Wipro's performance was weaker, with net profit declining to ₹3,199.7 crore from ₹3,352 crore in the June quarter. Its total deal bookings fell 22.9% sequentially to $2.595 billion, while large-deal wins declined 58.6% in constant-currency terms to $674 million. The company expects December-quarter revenue to range from a 1.5% decline to a 0.5% increase sequentially in constant-currency terms.

The correction earlier this year was driven partly by fears that AI tools could automate software development and traditional outsourcing, threatening established billing models. The same technology, however, could create demand for consulting, implementation, cloud migration and enterprise AI solutions. Investors are increasingly weighing this opportunity against the risk of pressure on conventional services revenue.

Can the rally sustain?

The October rebound signals a reassessment of risk, not necessarily a definitive turnaround. Investors will look for stronger deal conversion, sustained revenue growth and evidence that AI-related services can offset pressure on traditional business models.

Infosys's September-quarter results, due on Friday after market hours, are the next key trigger. Its FY27 guidance, deal pipeline and commentary on AI-led demand could shape sentiment across the sector.

Lower valuations after the sell-off have also attracted buyers looking for recovery opportunities in established IT companies. But the sector remains sensitive to US technology budgets, corporate spending decisions and interest-rate expectations.

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