Indian IT stocks rally on strong Q2 earnings and AI optimism
Quarter‑2 results from HCLTech and TCS sparked a broad rally in Indian IT shares on Oct. 15‑16, pushing the Nifty IT index up more than 3% in a day and about 9% over three sessions. HCLTech posted $3.72 billion in revenue and lifted its FY27 constant‑currency growth guidance to 2.5‑4%, while TCS reported a 15% year‑on‑year rise in net profit to Rs 13,884 crore. The rally was further fueled by a weaker rupee and positive sentiment around AI‑related services.
Why it matters
The sector‑wide advance suggests heightened investor confidence in Indian IT earnings and AI demand, which could lift share prices of listed IT firms. The raised guidance from HCLTech signals modest revenue growth expectations for FY27, influencing analyst forecasts and investor positioning.
Key facts
- 1HCLTech reported Q2 FY27 revenue of $3.72 billion, up 2% quarter‑on‑quarter and 2.2% year‑on‑year. tradingview.com
- 2HCLTech raised its FY27 revenue growth guidance to 2.5‑4% in constant currency, from a prior range of 1‑4%. tradingview.com
- 3TCS net profit increased about 15% year‑on‑year to Rs 13,884 crore for the quarter. tradingview.com
- 4The Nifty IT index climbed 2.5% on Oct. 15, extending its three‑day rally to roughly 9%. tradingview.com
- 5On Oct. 16 the Nifty IT index surged 3.39% to 31,761.35. news18.com
- 6Tech Mahindra shares jumped 7.24% on Oct. 16, leading the Sensex gainers. news18.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.