The Nifty IT index has staged a strong comeback, climbing nearly 10% over the last 10 trading sessions and more than 5% in the past 3 sessions. The rally comes as investors turn optimistic about the sector following encouraging Q1 FY27 earnings commentary, with several IT companies indicating improving demand in the second quarter and the second half of the financial year.
As sentiment improves, investors are rotating into quality IT names that had corrected sharply from their highs. Mid- and small-cap IT stocks have emerged as key beneficiaries, with eClerx Services, Zensar Technologies, and Info Edge (India) delivering gains of up to 27% in July.
The IT sector has gained momentum after early quarterly earnings pointed to a recovery in client spending and a healthier deal pipeline. Companies have also highlighted improving demand across key verticals, boosting expectations of stronger revenue growth in the coming quarters.
After underperforming the broader market for much of the year, IT stocks are attracting fresh buying interest as investors seek value opportunities in the sector.
eClerx Services has emerged as the top performer, with its shares rising over 27% in July. The stock has benefited from strong Q4 FY26 earnings, a bonus issue earlier this year, and renewed investor interest in mid-cap IT companies.
Zensar Technologies has gained more than 23% this month and is also in focus ahead of its July 17 dividend record date. The company reported a 27.7% year-on-year increase in Q4 FY26 revenue to ₹741.8 crore, while net profit rose nearly 36% to ₹199 crore.
Info Edge (India) has climbed over 21% in July after reporting a strong Q1 FY27 business update. Total billings rose 14% year-on-year to ₹737 crore, led by robust growth in its recruitment solutions business. The company also strengthened its AI offerings by rolling out new recruitment products, including AI-Rex, Talent Pulse, and PremiumX.
The 10% rally in the Nifty IT index signals improving investor confidence in the sector as demand expectations strengthen. While large-cap IT stocks have participated in the rebound, Zensar Technologies, Info Edge, and eClerx Services have significantly outperformed, rallying 21-27% in July. Investors will now watch upcoming earnings and management commentary to assess whether the recovery in IT spending continues through the rest of FY27.
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Published on: Jul 14, 2026, 2:47 PM IST
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