Infosys, TCS, Wipro, HCLTech, TechM shares gain as Nifty IT climbs 2%; What's fuelling the upmove?
Other IT counters including Coforge Ltd, Persistent Systems Ltd, Oracle Financial Services Software Ltd (OFSS), LTIMindtree Ltd and Mphasis Ltd also traded higher during the session. The Nifty IT sub-index was last seen up 1.97 per cent.
- May 15, 2026,
- Updated May 15, 2026 10:53 AM IST
Largecap IT counters such as Infosys Ltd, Tata Consultancy Services Ltd (TCS), HCLTechnologies Ltd, Tech Mahindra Ltd and Wipro Ltd gained in Friday's early trade, helping the Nifty IT index climb nearly 2 per cent.
Other IT counters including Coforge Ltd, Persistent Systems Ltd, Oracle Financial Services Software Ltd (OFSS), LTIMindtree Ltd and Mphasis Ltd also traded higher during the session. The Nifty IT sub-index was last seen up 1.97 per cent.
Kranthi Bathini, Equity Strategist at WealthMills Securities, said the rebound in the IT index was largely driven by value buying after a sharp correction in the sector. He urged investors to maintain a 'buy-on-dips' approach amid the recovery in IT shares.
According to Nuvama Institutional Equities, Indian IT stocks could be headed for a recovery. It remains positive on the medium- to long-term outlook driven by Gen AI adoption, though short-term volatility is expected to continue.
The brokerage said Indian IT services companies delivered largely in-line quarterly results, with revenue growth and margins staying stable. Deal wins also remained healthy, aided by AI-led demand and digital transformation programmes, although conversion timelines continued to remain stretched amid macro uncertainty.
"IT stocks are now reacting more to AI developments around the world than to their fundamentals and performances," Nuvama said. "We see the current scepticism as a repeat of previous tech cycles (2016–17 being the most recent one), and expect Indian IT companies to rebound, as Gen AI proliferation increases."
Nuvama noted that while IT services firms may continue to face near-term revenue cannibalisation due to Gen AI-led productivity gains, the sector could eventually hit an inflection point that may significantly expand the total addressable market (TAM). It estimates the opportunity size could grow to nearly $300–400 billion by 2030.
"We remain positive on the sector from a medium to long-term perspective — in the near term, expect volatility to persist," Nuvama added.
Among largecap IT names, the brokerage maintained 'Buy' ratings on TCS, Infosys, Wipro and Tech Mahindra with 12-month target prices of Rs 3,650, Rs 1,650, Rs 255 and Rs 1,750, respectively.
Nuvama also retained 'Buy' calls on LTIMindtree, Coforge, Persistent Systems and Mphasis. It assigned target prices of Rs 6,200 for LTIMindtree, Rs 2,200 for Coforge, Rs 6,100 for Persistent and Rs 3,200 for Mphasis.
Largecap IT counters such as Infosys Ltd, Tata Consultancy Services Ltd (TCS), HCLTechnologies Ltd, Tech Mahindra Ltd and Wipro Ltd gained in Friday's early trade, helping the Nifty IT index climb nearly 2 per cent.
Other IT counters including Coforge Ltd, Persistent Systems Ltd, Oracle Financial Services Software Ltd (OFSS), LTIMindtree Ltd and Mphasis Ltd also traded higher during the session. The Nifty IT sub-index was last seen up 1.97 per cent.
Kranthi Bathini, Equity Strategist at WealthMills Securities, said the rebound in the IT index was largely driven by value buying after a sharp correction in the sector. He urged investors to maintain a 'buy-on-dips' approach amid the recovery in IT shares.
According to Nuvama Institutional Equities, Indian IT stocks could be headed for a recovery. It remains positive on the medium- to long-term outlook driven by Gen AI adoption, though short-term volatility is expected to continue.
The brokerage said Indian IT services companies delivered largely in-line quarterly results, with revenue growth and margins staying stable. Deal wins also remained healthy, aided by AI-led demand and digital transformation programmes, although conversion timelines continued to remain stretched amid macro uncertainty.
"IT stocks are now reacting more to AI developments around the world than to their fundamentals and performances," Nuvama said. "We see the current scepticism as a repeat of previous tech cycles (2016–17 being the most recent one), and expect Indian IT companies to rebound, as Gen AI proliferation increases."
Nuvama noted that while IT services firms may continue to face near-term revenue cannibalisation due to Gen AI-led productivity gains, the sector could eventually hit an inflection point that may significantly expand the total addressable market (TAM). It estimates the opportunity size could grow to nearly $300–400 billion by 2030.
"We remain positive on the sector from a medium to long-term perspective — in the near term, expect volatility to persist," Nuvama added.
Among largecap IT names, the brokerage maintained 'Buy' ratings on TCS, Infosys, Wipro and Tech Mahindra with 12-month target prices of Rs 3,650, Rs 1,650, Rs 255 and Rs 1,750, respectively.
Nuvama also retained 'Buy' calls on LTIMindtree, Coforge, Persistent Systems and Mphasis. It assigned target prices of Rs 6,200 for LTIMindtree, Rs 2,200 for Coforge, Rs 6,100 for Persistent and Rs 3,200 for Mphasis.