Business · Markets · 4 hrs ago
Indian IT stocks drive Nifty to a second weekly gain
Indian IT stocks rose sharply as investors shifted from AI-linked shares to traditional software companies after a global sell-off in AI stocks.
Tech Mahindra and TCS results helped strengthen confidence in the sector.
The Nifty IT index gained more than 10% for the week, while the Nifty rose 2.8% for its second weekly gain.
The rally was uneven: banks, consumer goods, property and pharmaceutical shares did not share in the gains.
High oil prices and US bond yields remain pressures, and analysts say the recovery needs wider earnings growth and stronger domestic demand to last.
Results from HDFC Bank, ICICI Bank and Axis Bank are due Saturday and could shape sentiment toward financial stocks.
Jio Platforms’ ₹30,213 crore IPO opens on October 21, and could become India’s largest if fully subscribed.
Indian IT stocks drove the Nifty to a second consecutive weekly gain, with the Nifty IT index rising more than 10 per cent for the week.
The Nifty 50 closed at 23,146.15 on Friday, up 0.65 per cent for the session and 2.8 per cent for the week.
Tech Mahindra rose around 7 per cent after reporting higher quarterly profit and announcing a bonus issue and interim dividend.
The rally was not broad-based: several sectors and smaller-cap indexes fell or ended nearly flat.
Investors were watching upcoming bank results and the Jio Platforms IPO, as crude prices and global financial conditions remained risks.
- Who
- Indian IT companies led the gains, including Tech Mahindra, TCS and Infosys.
- What
- The Nifty recorded a second consecutive weekly gain, rising 2.8 per cent for the week.
- When
- The market closed on Friday, October 16, 2026.
- Where
- Indian stock markets.
- Why
- Investors shifted toward traditional software companies amid a global sell-off in AI-linked stocks, while quarterly results supported confidence in Indian IT.
This story does not have two clearly opposing sides.
The Nifty reached a support zone of 22,580–22,620.
The Nifty IT index rose nearly 4 per cent, and the Nifty 50 closed up 0.65 per cent.
HDFC Bank, ICICI Bank and Axis Bank were scheduled to report quarterly results.
The Jio Platforms IPO was scheduled to open for subscription.
- Nifty 50 close
- 23,146.15
- Nifty weekly gain
- 2.8 per cent
- Nifty IT weekly gain
- More than 10 per cent
- Tech Mahindra Q2FY27 net profit
- ₹1,585.6 crore, up 32.74 per cent year-on-year
- Jio Platforms IPO size
- ₹30,213 crore
- Jio Platforms IPO opening
- October 21
What people are saying
IT earnings are rebuilding confidence, and global tech sentiment is steadier.
One strong week is a start, not a trend.
Sustaining the recovery will require broader earnings growth beyond IT, supported by an improvement in domestic demand and easing margin pressures.