The Nifty IT index extended Friday’s rally on Monday, rising over 2 per cent in trade and emerging as the only sector trading with gains. The rally was broad-based, with all of the 10 index constituents trading in the green. In the last two sessions, the index has surged nearly 4 per cent.
As of 01:00 PM, the Nifty IT index was up 602 points, or 2.17 per cent, to trade at 28,319. Individually, Coforge and Tech Mahindra were the top gainers, up 4 per cent each at ₹1,341 and ₹1,426, respectively. Persistent Systems (₹4,878), Oracle Financial Services (₹9,298), Mphasis (₹2,147), LTM (₹4,071), and Infosys (₹1,139) were up in the range of 1 to 4 per cent.
As per data, the Nifty IT index has corrected 27 per cent on a Y-T-D basis. In comparison, the Nifty 50 index has declined 9.5 per cent in the same period.
According to data from ACE Equity, only one stock in the Nifty IT index has posted gains in 2026 so far, while the remaining nine constituents have fallen by as much as 35 per cent. Oracle Financial Services Software has been the sole outperformer, delivering a return of 17 per cent this year.
In contrast, LTIMindtree has emerged as the worst performer with a 35 per cent decline, followed by Infosys, down 31 per cent, and HCLTech, which has slipped 30 per cent. Meanwhile, Tata Consultancy Services, India’s largest IT services exporter, has dropped 29 per cent during the period.
The combined market capitalisation of nine IT index constituents, including Wipro, Infosys, Tata Consultancy Services, HCLTech, Tech Mahindra, Coforge, LTIMindtree, Mphasis, and Persistent Systems, has shrunk by nearly ₹9 trillion so far in 2026.
G Chokkalingam, founder and head of research at Equinomics Research, said that while a major wealth creation opportunity or “big alpha” is missing from the IT sector in the medium-to-long term, a clear tactical opportunity has emerged for investors looking for short-term gains.
“A 10-12 per cent upside from recent bottoms is quite possible, primarily because IT stocks have been beaten down very badly, causing their valuation multiples to shrink significantly. Additionally, the Indian rupee is depreciating and hitting new record lows, which acts as a positive tailwind for these export-driven companies,” he said.
Chokkalingam also noted that with the recent restoration of tax benefits on buybacks, more IT companies are likely to consider announcing equity buybacks at a substantial premium. Taking all these factors into account, he emphasised that the severe crash in valuations has created a strong case for tactical, short-term positioning in the sector.
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