The Nifty IT index snapped a four-session losing streak on Friday, rising 2.75% to 28,114.10 as of latest trading. According to 5paisa, all 10 constituents were trading in positive territory during the session, with the rally described as broad-based. This recovery marks a significant turnaround after the IT sector had experienced a sharp decline over the past four trading sessions, with the index having corrected 7% during this period and emerging as the top sectoral loser in 2026. The rebound came after the index had slipped 0.22% on Monday before witnessing a sharper sell-off from Tuesday onward, with Tuesday alone seeing a 3.7% drop.
Persistent Systems led the gains among index constituents, rising more than 3% during intraday trade. As reported by 5paisa, Infosys advanced 2.79%, while Tech Mahindra gained 2.31%. Tata Consultancy Services, LTIMindtree, Wipro, and HCL Technologies also participated in the rally, recording gains ranging between 1% and 2%. The broad-based nature of the recovery across all major IT sector constituents indicates strong investor confidence in the sector's prospects, with large-cap technology companies contributing significantly to Friday's recovery after recent declines.
The Nifty IT index has significantly underperformed the broader markets in 2026, with only one stock remaining in positive territory. According to ACE Equity data cited by Business Standard, Oracle Financial Services Software (OFSS) has delivered a 16% return so far this year, making it the sole gainer among the index constituents. In contrast, LTIMindtree has emerged as the top laggard, sinking 35%, followed by Infosys (down 32%), and HCLTech (down 31%). Tata Consultancy Services, the country's largest IT services exporter, has declined 30%. The nine IT companies of the IT index have collectively lost ₹9 trillion thus far in 2026.
The recent weakness in information technology stocks follows a broader global sell-off in technology sectors, with markets worldwide experiencing significant declines. According to Associated Press, the S&P 500 fell 1.1% from its all-time high set the day before, while the Dow Jones Industrial Average dropped 518 points and the Nasdaq composite declined 1.4%. Technology stocks led the decline in a sharp turnaround from their meteoric rises throughout much of the year, with Nvidia dropping 3.3% despite having gained more than 26% for the year so far. Applied Materials fell 0.7% even after reporting stronger profit growth than analysts expected, thanks to the global build-out of AI infrastructure.
The recovery was driven by value buying in IT shares after four consecutive sessions of losses, with analysts noting that today's rally is primarily a bargain buying rather than any major fundamental change. As reported by Aamar Deo Singh, senior vice president at Angel One, the rally was also boosted by the Nasdaq Composite hitting a record high last night, which has improved sentiment. Singh noted that rupee weakness is helping IT companies from an earnings perspective because these are export-oriented businesses. However, he emphasized that AI concerns remain a genuine cause of pressure, with the IT sector facing disruption fears about how companies will adapt and leverage artificial intelligence going forward. Friday's gains helped the sector partially recover from the recent correction, although the index continues to trade below levels seen before the recent sell-off began.
