Indian IT stocks witnessed significant gains on Friday, with Infosys, Tech Mahindra and HCL Technologies leading the sectoral rally, rising more than 3% each. TCS, Persistent Systems, Mphasis and LTIMindtree also contributed to the broad-based rally. The NIFTY IT index gained as much as 2.3%, marking its second consecutive session of gains, with the Nifty IT index rising 0.86% to 28,970.55 levels. The rally was buoyed by strong June quarter results from major IT companies, with the gains also lifting sentiment across the broader Indian stock market. According to The Economic Times, the rally was buoyed by Tech Mahindra's impressive Q1 performance and encouraging management commentary. The Sensex jumped 817.86 points, or 1.06%, to trade at 78,004.73, while the Nifty 50 was higher by 206.60 points, or 0.86%, at 24,279.35.
HCL Technologies reported a standalone net profit of ₹4,624 crore for the April-June quarter of FY27, up 3% sequentially. As reported by NDTV Profit, revenue from operations rose 1.8% to ₹34,579 crore. The company outperformed Bloomberg consensus estimates, which had projected a net profit of ₹4,529 crore on revenue of ₹34,326 crore. HCLTech CEO C Vijayakumar highlighted the strong performance, stating that the company witnessed robust client bookings during the April-June quarter, with the Q1 quarter marking the highest-ever deal win. Analysts at Kotak Institutional Equities expect healthy total contract value (TCV) of deal wins in the $2.2-2.5 billion range.
Tech Mahindra reported a 28.4% rise in consolidated net profit to ₹1,465 crore for the June quarter (Q1 FY27), with revenue from operations up 17.7% to ₹15,712 crore. In dollar terms, Q1FY27 revenue came in at $1,660 million, up 2.2% sequentially and 6.1% year-on-year. The company expressed confidence about a sustained performance through the rest of the year, provided the macroeconomic situation does not change dramatically. Growth was broad-based, led by manufacturing and financial services, with strong momentum also in healthcare and retail sectors. Management expressed confidence about outperforming peer average growth through the remainder of the year, supported by its strong order book and long-standing client relationships. According to Business Standard, the company also reported healthy margin expansion in Q1 and guided for industry-leading growth for FY27 backed by a strong total contract value (TCV) of $1,078 million.
TCS announced several significant deal wins that boosted investor sentiment. On July 13, the company announced an expanded collaboration with ABB to transform global network operations through an integrated network-as-a-service model. On July 14, The New Terminal One at John F. Kennedy International Airport entered into a strategic partnership with TCS to shape one of the world's leading airport experiences. On July 15, TCS launched the TCS Autonomous Engineering Lab Powered by NVIDIA at its Global Axis campus in Bengaluru. By the end of 2026, TCS plans to establish 10 GECs globally, including four in India, to strengthen its AI-enabled transformation capabilities.
The rally was supported by short covering after the sharp correction in IT stocks over the past few months, as traders who had bet on declines started buying back positions. Investors also favored companies with healthy deal pipelines, strong execution, and resilient earnings. According to Equirus Securities, the Nasscom US CEO Forum stated that India's technology services sector will remain a key driver of global enterprise transformation in the AI era, with India's AI services market already generating an estimated $10-12 billion in revenue. Despite the recent recovery, as per Business Standard, the Nifty IT index underperformed the market by falling 22% thus far in CY2026, compared to a 7.2% decline in the Nifty 50. Market experts anticipate HCLTech to maintain its constant currency revenue and operating margins guidance for FY27, with analysts expecting steady revenue growth and EBIT margin expansion across the sector.
