Nifty IT rebounds, leads sectoral gains on value buying after sharp sell-off; TCS, Infy among top Nifty gainers

Share Markets Today

• Nifty IT index up 1.7%, leading sectoral gains Friday morning
• HCLTech, Tech Mahindra, TCS, Wipro, Infosys among top gainers
• Rebound follows recent IT sell-off and is aided by a weaker rupee

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IT stocks rebounded in early trade on Friday and dominated the Nifty top gainers list. The Nifty IT index emerged as the top sectoral gainer as investors returned to beaten-down technology shares after a sharp recent sell-off.

At around 9:30 am, the Nifty IT index was up 1.7 percent, outperforming the broader market even as benchmark indices traded lower. The Sensex was down 320 points, or 0.4 percent, at 79,696, while the Nifty 50 slipped 94 points to 24,671.5.

Several frontline IT stocks featured among the top gainers on the Nifty. HCLTech and Tech Mahindra shares rose about 1.9 percent each. TCS stock gained 1.5 percent, Wipro added 1.3 percent, and Infosys advanced around 1.2 percent.

The rebound comes after a steep correction in IT shares over the past few weeks. The Nifty IT index had fallen 0.6 percent on Thursday, and about 1.6 percent over the last three sessions. The broader downtrend has been much sharper on a longer horizon, with the index dropping around 14.2 percent in one month and about 21 percent over the past three months.

• Also read | FIIs dump Rs 17,000 crore in IT stocks in February amid AI concerns

Friday’s move may be due to value buying after the recent sell-off. A weaker rupee also offered some support to export-oriented IT companies. The Indian rupee opened at 91.65 per dollar, compared with Thursday’s close of 91.60, which can benefit IT services firms that derive a significant share of their revenues from overseas markets.

The IT sector has been under intense pressure recently amid growing concerns that rapid advances in artificial intelligence could structurally reshape the traditional IT services business model. Fears intensified after comments from Anthropic about automating legacy software modernisation -- a key revenue stream for many IT services companies -- triggering a sharp de-rating across both large-cap and midcap IT stocks.

Analysts and market participants remain cautious on the sector despite the short-term bounce. Recent commentary has highlighted that global investors remain underweight on Indian IT stocks, with investors closely watching how IT companies adapt their business models to an AI-driven productivity cycle.

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