IT stocks lead rally; Nifty IT has best week since 2008

Shares of Indian technology companies powered a sharp rally on Dalal Street this week. The BSE Sensex jumped 1,533.72 points, or 2.11%, to 74,315.61 on Thursday, 15 October 2026, and rose again on Friday to close at 74,729.28. The Nifty 50 ended Friday at 23,146.15, according to market reports.

The Nifty IT index rose about 11.7% over the week, its best weekly gain since October 2008, after encouraging quarterly results from IT companies, according to Ventura Securities.

Key points

• Thursday, 15 October: Sensex up 1,533.72 points (2.11%) to 74,315.61; Nifty up 374.65 points (1.66%) to 22,997.35.
• Friday, 16 October: Sensex up 0.56% to 74,729.28; Nifty up 0.65% to 23,146.15.
• Nifty IT gained about 3.9% on Friday and about 11.7% for the week.
• Friday's biggest gainers included Tech Mahindra, TCS, Infosys, Bharti Airtel and HCL Technologies.
• This article is news, not investment advice.

Why IT stocks rallied

Quarterly results were the trigger. Results from Tech Mahindra and Wipro, reported in the middle of the week, lifted the whole sector, Ventura Securities said. On Friday, Tech Mahindra rose about 8.5%, TCS about 4.9%, Infosys about 4.6% and HCL Technologies about 2.4%.

The rally came despite a difficult backdrop for Indian IT companies in the US, where the Labor Department has frozen green card processing at several large employers, including Infosys, TCS, Wipro and HCL, and the government has proposed tighter rules on work visas. The companies have said they expect little impact from the green card freeze.

Sensex Nifty IT rally: what else helped

Falling US bond yields, a firmer rupee and softer crude oil prices supported sentiment, Ventura said, though Brent crude stayed high, near $105 a barrel. Auto, metal and public sector bank shares also gained. Mid-cap and small-cap indices were roughly flat, so the rally was led by large companies.

Friday's biggest decliners included InterGlobe Aviation, the owner of IndiGo, BSE Ltd, Max Healthcare, Tata Consumer Products and Jio Financial Services.

The bigger picture

The rally comes against a backdrop of higher interest rates and inflation. The Reserve Bank of India raised its main policy rate to 5.50% on 7 October, and retail inflation rose to 5.54% in September. High oil prices, linked to conflict in West Asia, remain the biggest risk for India, which imports most of its crude.

Big events ahead include the Jio Platforms IPO, which opens on 21 October, more quarterly results from large companies, and the RBI's next policy decision on 4 December.

Why it matters: Indian IT companies are among the most valuable listed firms, and a big move in their shares shifts the whole market, along with the savings of millions of mutual fund investors. For readers abroad, the IT sector's results are a barometer of global corporate spending on technology services, much of it from the US and Europe.

One strong week doesn't make a trend, especially with oil above $100 and interest rates rising. But for an IT sector that spent much of the year worrying about US policy, a week of encouraging results was a welcome change.

This article is news, not investment advice.