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IT Stocks Make Strong Comeback With Massive Gains As Sector Index Rallies.
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CNBC Awaaz•16-10-2026, 15:35
IT Stocks Make Strong Comeback With Massive Gains As Sector Index Rallies.
- •Indian IT stocks witnessed a massive rally this week, with the IT index surging 12 percent and outperforming all other sectoral indices.
- •The sharp recovery added nearly Rs 2.6 lakh crore to the market capitalization of IT companies in just five days.
- •The comeback was driven by better-than-expected quarterly results, strong management confidence, and heavy selling in US AI stocks.
- •Tech Mahindra led the pack with gains of over 16 percent, followed by robust surges in Wipro, TCS, Infosys, and HCL Tech.
- •Global commentary from industry leaders has renewed market discussions on whether artificial intelligence poses a threat or creates new opportunities for IT firms.
Key Questions Answered
Indian IT stocks rebounded strongly due to better-than-expected quarterly results from major firms like TCS and HCLTech, confident management outlooks, and a massive sell-off in US artificial intelligence and semiconductor shares.
TCS reported a 15% year-on-year increase in consolidated net profit, reaching ₹13,884 crore, alongside an operating margin of 24% and a net margin of 19%.
The heavy correction and sell-off in global AI and chip stocks helped ease competitive pressures on traditional Indian IT services and potentially reduced foreign investor outflows.
