Mphasis, Infosys, TCS, HCL Tech, Coforge, LTM: IT stock climb up to 8% amid reverse AI trade
Indian IT stocks rallied as the Nifty IT index gained over 2%, led by Mphasis, amid a global AI stock selloff and renewed interest in Indian equities.
- Nov 6, 2026,
- Updated Nov 6, 2026 10:10 AM IST
Indian IT stocks rallied on Friday, with the Nifty IT index rising more than 2.35 per cent in early trade, as investors looked for opportunities amid the global selloff in artificial intelligence (AI)-linked stocks. Mphasis Ltd led the gains among IT stocks, surging as much as 8 per cent to Rs 2,712.
HCL Technologies Ltd climbed more than 2.5 per cent to Rs 1,468, while Persistent Systems Ltd advanced over 2 per cent. Large-cap IT stocks Infosys Ltd and Tata Consultancy Services Ltd (TCS) gained up to 3 per cent each. Coforge Ltd and Wipro Ltd rose more than 1 per cent, while Tech Mahindra and LTM also traded higher. Oracle Financial Services Software bucked the trend, falling nearly 2 per cent.
The rally came as investors assessed whether the sharp correction in global AI stocks could trigger a shift in allocations towards other markets, including India. Wall Street's selloff wiped out more than $2 trillion in market value, while technology-heavy Asian markets also witnessed steep losses amid concerns over potential AI regulation and the sustainability of AI infrastructure spending.
Foreign investor activity provided another positive signal. Provisional data showed foreign portfolio investors (FPIs) bought Indian equities worth Rs 13,801.83 crore on Thursday, potentially supporting sentiment towards domestic stocks.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, "This tech rout, particularly the sharp deceleration in AI trade will turn out to be beneficial for India."
However, uncertainty around AI regulation and global technology spending remains. Nomura noted that a federal AI data centre moratorium is unlikely, although a temporary pause at the state level remains possible. The key issues include power costs, regulatory oversight, semiconductor supplies to China and the future of export controls on chipmaking equipment.
Hemang Gor, Senior Research Analyst – Derivatives and Technical Research at Axis Direct, highlighted the global technology selloff following concerns over potential curbs on AI data centres.
For Indian IT stocks, the sustainability of the rally will depend on whether global investors continue shifting allocations towards emerging markets and whether concerns around AI spending ease. Developments in crude oil prices, US monetary policy and global technology stocks will also remain key factors influencing market sentiment.
Indian IT stocks rallied on Friday, with the Nifty IT index rising more than 2.35 per cent in early trade, as investors looked for opportunities amid the global selloff in artificial intelligence (AI)-linked stocks. Mphasis Ltd led the gains among IT stocks, surging as much as 8 per cent to Rs 2,712.
HCL Technologies Ltd climbed more than 2.5 per cent to Rs 1,468, while Persistent Systems Ltd advanced over 2 per cent. Large-cap IT stocks Infosys Ltd and Tata Consultancy Services Ltd (TCS) gained up to 3 per cent each. Coforge Ltd and Wipro Ltd rose more than 1 per cent, while Tech Mahindra and LTM also traded higher. Oracle Financial Services Software bucked the trend, falling nearly 2 per cent.
The rally came as investors assessed whether the sharp correction in global AI stocks could trigger a shift in allocations towards other markets, including India. Wall Street's selloff wiped out more than $2 trillion in market value, while technology-heavy Asian markets also witnessed steep losses amid concerns over potential AI regulation and the sustainability of AI infrastructure spending.
Foreign investor activity provided another positive signal. Provisional data showed foreign portfolio investors (FPIs) bought Indian equities worth Rs 13,801.83 crore on Thursday, potentially supporting sentiment towards domestic stocks.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, "This tech rout, particularly the sharp deceleration in AI trade will turn out to be beneficial for India."
However, uncertainty around AI regulation and global technology spending remains. Nomura noted that a federal AI data centre moratorium is unlikely, although a temporary pause at the state level remains possible. The key issues include power costs, regulatory oversight, semiconductor supplies to China and the future of export controls on chipmaking equipment.
Hemang Gor, Senior Research Analyst – Derivatives and Technical Research at Axis Direct, highlighted the global technology selloff following concerns over potential curbs on AI data centres.
For Indian IT stocks, the sustainability of the rally will depend on whether global investors continue shifting allocations towards emerging markets and whether concerns around AI spending ease. Developments in crude oil prices, US monetary policy and global technology stocks will also remain key factors influencing market sentiment.