IT stocks extend rebound for second day; Infosys, TCS, HCL Tech gain 2-4% as sector stabilises after sell-off

Indian IT stocks

• Indian IT stocks rose for a second day, led by Infosys and TCS
• Nifty IT index outperformed broader market, up 0.88 percent
• Gains follow easing AI disruption fears and global tech rebound

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Indian IT shares rose for a second consecutive session in early trade on Thursday with major stocks such as Infosys and TCS rising 2-3 percent, extending the recovery after a sharp sector-wide sell-off earlier this week. The gains came even as benchmark indices traded largely flat, indicating selective buying interest in technology stocks after recent heavy losses.

At 9:28 am, the Nifty IT index was up 0.88 percent at 30,796 outperforming the broader market. The Sensex was up just 48 points, or 0.06 percent, at 82,324, while the Nifty gained 31 points, or 0.12 percent, to 25,514. Market breadth remained positive.

Among the top gainers on the Nifty 50, HCL Technologies shares climbed 3.7 percent to Rs 1,388.5, while Tata Consultancy Services rose nearly 3 percent to Rs 2,649.9. Tech Mahindra advanced 2.5 percent to Rs 1,379.5, and Infosys stock gained just over 2 percent to Rs 1,302.2.

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The second straight day of gains follows a bruising sell-off earlier in the week, when IT stocks came under heavy pressure amid fears that rapid advances in artificial intelligence (AI) could structurally alter the traditional IT services business model. Concerns intensified after comments from Anthropic on automating legacy software modernisation, a core revenue area for many IT services firms, triggering a sharp de-rating across both large-cap and midcap IT stocks.

However, the sentiment has stabilised over the past two sessions, aided by a rebound in global technology stocks and easing volatility. India VIX eased a further 1.1 percent to 13.34 on Thursday, after a sharp decline in the previous session, signalling reduced near-term risk aversion.

The recovery in IT shares also comes against the backdrop of improved global tech sentiment after Wall Street’s recent rally, led by gains in technology counters, which helped temper fears around AI-led disruption. Follow-up comments from Anthropic indicating a greater focus on partnerships rather than outright displacement of existing business models had also helped calm investor nerves.

Despite the rebound, analysts and market participants remain cautious on the sector. Recent commentary has highlighted that global investors continue to be underweight on Indian IT stocks, with buying interest still selective rather than broad-based. While the current recovery suggests some bargain hunting and short-covering in large-cap names, investors remain focused on how IT companies adapt their business models to an AI-driven productivity cycle.

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