Indian IT Stocks Defy the Global Tech Selloff: Nifty IT Jumps 3.3% as TCS Leads a 29% Comeback From Its July Low

Short answer: India's Nifty IT index surged as much as 3.3% to 33,138.60 in early trade on Friday, October 23, 2026, led by Tata Consultancy Services (TCS), which jumped 3.71% to ₹2,600. The rally capped a comeback of roughly 29% from the index's July low, driven by better-than-expected September-quarter earnings, record deal wins and growing AI revenue — even as the broader Indian market and global tech stocks were falling.

What happened

Indian information technology stocks were the standout performers in Friday's session. The Nifty IT index climbed as much as 3.29–3.3% to an intraday high of 33,138.60, with nine of its ten constituents trading in positive territory in early trade. TCS topped the Nifty 50 gainers list, rising 3.71% to ₹2,600 from a previous close of ₹2,506.90. Infosys added 2.48% to ₹1,182, and HCL Technologies gained 1.92% to ₹1,449. Wipro advanced around 2%, while mid-cap names Coforge, Persistent Systems and Mphasis gained nearly 1% each.

The move stood out because almost everything else was under pressure. Benchmark indices opened higher but slid into the red as a technology-led selloff swept Wall Street and Asia and Brent crude traded near $114 per barrel, close to a five-month high. By late morning the Sensex was down more than 500 points and the Nifty 50 had slipped below 22,500 — yet IT stocks held their gains, reversing the sector's 1.1% decline from the previous session.

Why it's blowing up

This is a sector investors had left for dead. Earlier this year, Indian IT services stocks were hit by a global selloff in software shares as concerns mounted that artificial intelligence could disrupt the traditional IT services business model. Slowing revenue growth, geopolitical uncertainty and clients demanding lower prices piled on. The Nifty IT index fell 11% in September alone and, despite the recovery, is still down about 10% over the past year.

October has flipped the script. The index has gained around 17% this month and roughly 29% from its July low of 25,699.10. Traders describe part of the move as an "anti-AI trade": as global AI-linked stocks correct on worries about elevated valuations and heavy capital spending, investors are rotating toward Indian IT firms that get paid to implement AI for enterprises — through consulting, cloud infrastructure, software modernisation and automation — rather than spending billions building it.

Key facts

Nifty IT intraday high: 33,138.60, up as much as 3.29–3.3% on Friday, October 23
TCS: +3.71% to ₹2,600 — the Nifty 50's top gainer; Q2 FY27 revenue grew 11.2% year over year in rupee terms, with net profit up 15% to ₹13,884 crore
Infosys: +2.48% to ₹1,182, with its September-quarter results due later on Friday
HCL Technologies: +1.92% to ₹1,449; record new deal bookings of $3.3 billion in Q2 FY27, up 27% year over year, and the lower end of FY27 revenue growth guidance raised to 2.5% from 1%
Deal momentum: TCS reported total contract value of $9.6 billion, including a five-year strategic partnership with Porsche AG; Tech Mahindra's new deal wins rose 25.4% to $1.02 billion
AI revenue: TCS's annualised AI revenue crossed $3.1 billion in Q2 FY27; HCLTech's annualised advanced AI revenue reached $876 million, up 78% year over year in constant currency
The comeback in context: Nifty IT is up about 17% in October after falling 11% in September, and has recovered roughly 29% from its July low of 25,699.10 — but remains down about 10% over the past year

What's next

The immediate test arrives within hours: Infosys reports its September-quarter results later on Friday, and Coforge and Mastek also announce results the same day. Their numbers and commentary on deal pipelines and AI demand will either extend the run or expose it as a relief rally. Analysts caution that after a rise of around 16–17% in a month, valuation comfort has narrowed — sustaining the move will require deal conversion, margin protection and earnings upgrades. Headwinds remain: Brent crude near $114 and foreign institutional selling (₹3,459 crore sold on October 22). This post reports market moves and company results only; it is not financial advice.

Sources

FAQ

Why did Indian IT stocks rise on October 23, 2026?

Investors bought IT shares after better-than-expected September-quarter earnings, record deal wins and encouraging management commentary, with Cyient's results on Thursday adding momentum ahead of Infosys' report later Friday.

How much has the Nifty IT index recovered?

The index has gained around 17% in October and roughly 29% from its July low of 25,699.10, though it remains down about 10% over the past year.

Which IT stocks led Friday's rally?

TCS led with a 3.71% rise to ₹2,600, followed by Infosys (+2.48% to ₹1,182) and HCL Technologies (+1.92% to ₹1,449), with Wipro up around 2%.

What is the "anti-AI trade" in Indian IT stocks?

It describes investors rotating out of expensive global AI stocks and into Indian IT services firms, which earn revenue helping enterprises implement AI rather than funding the AI build-out themselves.