IT Stocks Rally: Nifty IT Gains About 3% as Tech Mahindra, Wipro Q2 Results Lift Sector
The IT stocks rally on Friday, October 16, 2026 pushed the Nifty IT index up about 3% in early trade. Tech Mahindra led, helped by second-quarter results that beat expectations, followed by Wipro, Infosys and TCS. The figures below are early-trade snapshots and will change by the close.
Why IT stocks are rising today
| Stock / index | Early-trade move | Main driver |
|---|---|---|
| Nifty IT | About 2.8% to 3% | Q2 results, global AI-stock correction |
| Tech Mahindra | About 5% to 7% (snapshots differ) | Q2 beat, strong deal wins |
| Wipro | About 4% to 5% | Q2 revenue above estimates |
| Infosys | 3.71% | Sector momentum |
| TCS | 3.19% | Sector momentum |
The moves came even as the broader market was mixed, with several banking and consumer stocks lower.
Tech Mahindra and Wipro results
Tech Mahindra reported second-quarter FY27 revenue and margins above expectations. New deal wins, measured as total contract value, were $1,023 million, up 25.4% year on year. Brokerages including Systematix said the bookings were broad-based, which reduces the risk of reliance on a single vertical.
Wipro reported second-quarter revenue above estimates. Management said delayed large deals could support growth in coming quarters. Concerns over weak deal bookings and a subdued near-term outlook remain, and several brokerages remain bearish on the stock.
Global AI sell-off and market backdrop
The rally comes as global AI-linked stocks correct. Dr V K Vijayakumar, chief investment strategist at Geojit Investments, said the Nifty 50 gained 668 points over three days, helped by the weakening AI trade and better-than-expected second-quarter results. He said positive IT results and management commentary had revived the IT index sharply.
Vijayakumar also said a decline in the US 10-year bond yield and a stronger rupee could restrain foreign investor selling. He cautioned that foreign institutions could keep selling while the US 10-year yield stays above 5% and Brent crude trades above $100 a barrel.
What the rally does and does not show
The gains reflect reaction to earnings and the possibility of better deal conversion. They do not mean concerns about demand have been resolved. The next test, as described in market commentary, is whether strong quarterly results turn into sustained revenue growth and better deal execution. That depends on earnings delivery, management guidance and the wider demand environment.
