IT stocks rebound: Infosys, TCS, Wipro, HCLTech, TechM, LTM, Coforge shares jump; what's behind the surge?
Other IT stocks, including Coforge Ltd, Persistent Systems Ltd, Oracle Financial Services Software Ltd (OFSS), LTM Ltd (formerly known as LTIMindtree) and Mphasis Ltd, also traded higher during the session. The Nifty IT sub-index was last seen up 3.51 per cent.
- May 19, 2026,
- Updated May 19, 2026 10:05 AM IST
Largecap IT counters such as Infosys Ltd, Tata Consultancy Services Ltd (TCS), HCLTechnologies Ltd, Tech Mahindra Ltd and Wipro Ltd gained in Tuesday's early trade, helping the Nifty IT index climb nearly 4 per cent.
Other IT stocks, including Coforge Ltd, Persistent Systems Ltd, Oracle Financial Services Software Ltd (OFSS), LTM Ltd (formerly known as LTIMindtree) and Mphasis Ltd, also traded higher during the session. The Nifty IT sub-index was last seen up 3.51 per cent.
Arpit Beriwal, Manager – Derivatives Analyst (Equity Research) at Motilal Oswal Financial Services Ltd (MOFSL), noted that the IT sector has remained an underperformer over the past one-and-a-half to two years. He added that the ongoing pullback in IT stocks is helping the benchmark Nifty50 sustain above the key support level of 23,600.
Kranthi Bathini, Equity Strategist at WealthMills Securities, stated that the recovery 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.
Nuvama Institutional Equities believes Indian IT stocks are likely on the path to recovery. The domestic brokerage remains positive on the medium- to long-term outlook driven by Gen AI adoption, though short-term volatility is expected to continue.
It 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.
Largecap IT counters such as Infosys Ltd, Tata Consultancy Services Ltd (TCS), HCLTechnologies Ltd, Tech Mahindra Ltd and Wipro Ltd gained in Tuesday's early trade, helping the Nifty IT index climb nearly 4 per cent.
Other IT stocks, including Coforge Ltd, Persistent Systems Ltd, Oracle Financial Services Software Ltd (OFSS), LTM Ltd (formerly known as LTIMindtree) and Mphasis Ltd, also traded higher during the session. The Nifty IT sub-index was last seen up 3.51 per cent.
Arpit Beriwal, Manager – Derivatives Analyst (Equity Research) at Motilal Oswal Financial Services Ltd (MOFSL), noted that the IT sector has remained an underperformer over the past one-and-a-half to two years. He added that the ongoing pullback in IT stocks is helping the benchmark Nifty50 sustain above the key support level of 23,600.
Kranthi Bathini, Equity Strategist at WealthMills Securities, stated that the recovery 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.
Nuvama Institutional Equities believes Indian IT stocks are likely on the path to recovery. The domestic brokerage remains positive on the medium- to long-term outlook driven by Gen AI adoption, though short-term volatility is expected to continue.
It 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.