Nifty IT Index Rises 12% in July as Tech Mahindra, HCL Techand TCS Lead Recovery

Information technology (IT) stocks continued their strong rally on July 17, with the Nifty IT Index emerging as one of the best-performing sectoral indices.

During intraday trade, the index gained as much as 2.3% on the National Stock Exchange (NSE). By around 11:52 am, it was trading 1.3% higher, outperforming the Nifty 50, which was up 0.83%.

So far in July 2026, the Nifty IT Index has advanced 12%, compared with a 2% gain in the Nifty 50.

The index had touched its 52-week low of 25,699.10 on July 1, 2026, and has since recovered strongly.

Leading IT Stocks Continue To Gain

Several large-cap IT companies extended their gains during Friday's session.

Among the top performers in the Nifty IT index were Tech Mahindra, Tata Consultancy Services (TCS), HCL Technologies, Infosys, and LTIMindtree, with each of these stocks recording strong gains during the trading session, supported by positive earnings sentiment and renewed buying interest in the IT sector. 

These stocks gained up to 3% during the day and have recovered 14% to 20% from their respective 52-week lows, which were also recorded on July 1.

Despite this sharp rebound, the IT sector remains under pressure on a year-to-date basis.

IT Sector Still Lags the Broader Market In 2026

Although July has seen a strong recovery, the sector has underperformed the broader market during calendar year 2026.

So far this year:

• Nifty IT Index: Down 22%
• Nifty 50: Down 7.2%

This indicates that while investor sentiment towards IT stocks has improved recently, the sector is still recovering from earlier weakness.

Tech Mahindra Supports the Rally

Tech Mahindra was among the strongest gainers after announcing Q1 FY27 results.

The company reported:

• 2.6% quarter-on-quarter growth in constant currency revenue.
• 6.6% year-on-year growth in constant currency revenue.
• Strong margin expansion during the quarter.
• New deal wins with a total contract value (TCV) of $1.078 billion.

Management also expressed confidence in achieving industry-leading revenue growth and an EBIT margin of 15% during FY27.

The company highlighted healthy demand across several sectors, including:

• Banking and Financial Services (BFSI)
• Manufacturing
• Healthcare
• Retail

However, management noted that phased salary increases, continued investments in artificial intelligence (AI) capabilities and expansion of sales initiatives may create some short-term pressure on margins.

Read More: JioBlackRock Mutual Fund's June 2026 Portfolio: Top Stock Holdings Include RIL, HDFC Bank and SBI! 

Conclusion

The Nifty IT Index has staged a strong recovery in July, supported by earnings, improving deal wins and renewed investor confidence in leading IT companies. Tech Mahindra, HCL Technologies, TCS and Infosys have led the rally after bouncing back from their recent lows. 

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