IT Stocks Rally for 4th Day: Why Are Infosys, TCS, Tech Mahindra Shares Rising? Know Key Reasons

The NIFTY IT Index opened the October 16, 2026, session with a positive outlook at 30,983.15 and registered an intraday low of 30,904.10 soon after opening. The index later touched an intraday high of 31,813.10. 

Know The Key Reasons for IT Stocks Rally 

1. Robust Q2 Earnings

Tech Mahindra, Wipro, Infosys, and TCS reported stellar September-quarter results. Strong deal wins, volume growth, and Wipro’s healthy pipeline beat market expectations, triggering massive value-buying across the sector. 

2. "Reverse AI" Rotation

A global sell-off in capital-intensive chipmakers caused investors to shift capital. Indian IT services firms became a safe-haven refuge as funds rotated away from expensive US and Asian hardware stocks. 

3. AI Revenue Growth

Fears of AI disrupting software services faded as firms monetised technologies. Infosys and TCS reported significant AI-driven revenues, while HCLTech upgraded its full-year growth guidance, boosting long-term investor confidence. 

4. Weakening Rupee Benefits

A depreciating Indian Rupee against the US Dollar structurally boosted export-oriented margins. Combined with internal cost-control measures, this currency tailwind directly lifted operational profitability across major IT companies. 

NIFTY IT Index Performance on October 16, 2026 

The NIFTY IT index opened above its previous close at the 30,983.15 level and hit an intraday low of 30,904.10. 

As the session progressed, strong buying interest emerged, lifting the index by over 1,090 points from its previous close to touch a high of 31,813.10. 

At 12:57 PM, the index was trading at 31,685.65, up by 965.85 points or 3.14% on October 16, 2026. 

Advance Decline Ratio of NIFTY IT Index on October 16, 2026 

The market breadth of NIFTY IT remained extremely strong during the morning session on October 16, 2026, with 8 stocks advancing and 2 stocks declining. 

Broad-based buying was observed across index heavyweights, leaving the vast majority of index constituents in the green. 

Top Gainers and Losers of NIFTY IT Index on October 16, 2026 

The market index recorded widespread gains across its constituents during the session as of 12:57 PM. 

Among the gainers, Tech Mahindra (TECHM) led the advance with a Last Traded Price (LTP) of 1,783.80, gaining 133.80 points (+8.11%). 

It was followed by Wipro (WIPRO), which rose by 10.11 points (+5.81%) to an LTP of 184.16. 

Tata Consultancy Services (TCS) also traded firm at an LTP of 2,448.10 with a value increase of 98.10 points (+4.17%), while Infosys (INFY) rounded out the top gainers at an LTP of 1,153.15, adding 43.15 points (+3.89%). 

Conversely, heavy selling pressure was observed among the top losers, Persistent Systems (PERSISTENT) dropped the sharpest in percentage terms, falling by 194.50 points (-3.33%) to an LTP of 5,645.50. 

Coforge (COFORGE) also faced notable corrections, shedding 21.20 points (-1.10%) to reach an LTP of 1,913.10. 

Read More: Indian Bank Share Price in Focus After Q2 FY27 Earnings Results: Total Income Up 21.1% YoY! 

Conclusion 

On Friday, October 16, 2026, the NIFTY IT Index traded with gains of 3.14% by midday, supported by broad-based buying. Strength in Tech Mahindra, Wipro and Tata Consultancy Services lifted the index higher even as a few constituents lagged the broader move. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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