Updated 19 February 2026 at 13:17 IST
Infosys & HCL Tech Lead IT Sector Recovery; Nifty IT Rebounds 1.5% After Last Week’s Record 9.1% Sector Sell-off
Indian IT stocks rose, supported by positive global technology cues and valuation-led buying after a recent correction. Gains were led by Infosys, TCS and HCL Technologies, while brokerages said concerns around AI disruption may be overstated in the near term.
Indian IT stocks moved higher in trade on Thursday, tracking a rally in global technology shares and aided by renewed buying interest after a sharp correction earlier this month. The Nifty IT index rose over 1.2% in early trade to around 33,070, supported by gains across large-cap IT stocks including Tata Consultancy Services, Infosys, and HCL Technologies.
Shares of Infosys climbed nearly 1.3% to ₹1,391.30 on the NSE by late morning trade, after touching an intraday high of ₹1,398.00. Trading volumes stood at over 2.4 million shares, indicating active participation. Tata Consultancy Services gained over 1.1%, while HCL Technologies rose close to 0.8%. Other IT majors, such as Wipro and Tech Mahindra, advanced around 1.5% each. Among mid-cap names, LTI Mindtree, and Oracle Financial Services Software traded with modest gains. Persistent Systems declined more than 2.1%, while Mphasis was marginally lower, underperforming the broader sector.
Global Tech Rally Supports Sentiment
The recovery in Indian IT stocks followed gains in US technology shares overnight, after Nvidia announced a multi-year supply agreement to provide artificial intelligence chips to Meta Platforms. The development eased near-term concerns around slowing AI-related spending and helped lift sentiment across global technology stocks. Semiconductor and data storage companies in the US also saw strong gains, showing sustained demand linked to AI infrastructure. Broader US markets closed higher, with the S&P 500 and the Nasdaq Composite both ending in the green, adding to positive cues for technology stocks globally.
Prasenjit Paul, Equity Research Analyst at Paul Asset & Fund Manager at 129 Wealth Fund, said, “The recovery in frontline IT large-cap names appears more technical than structural at this stage. After a sharp selloff, short covering and valuation comfort typically trigger a bounce.” He added, “However, the underlying concerns that led to the correction, the evolving impact of agentic AI on traditional service models, have not disappeared overnight.”
JPMorgan said in a sector note that AI is more likely to reshape the nature of work for IT services firms rather than eliminate demand. The brokerage highlighted that large IT vendors remain deeply embedded in client technology ecosystems and are expected to participate in AI-driven transformation projects.
Recent Sell-off Sets Stage For Tactical Rebound
The Nifty IT index had fallen 9.1% last week, marking its worst weekly decline in nearly 11 months, amid fears that rapid advancements in generative AI could intensify competition and pressure traditional service models. Thursday’s gains reflected selective value buying after the sharp correction, rather than a full reversal of trend, as investors reassess earnings visibility and client spending patterns in the context of AI adoption. “Investors should differentiate between tactical rebounds and durable bottom formation,” warned Paul. He added, "That said, we believe the real alpha opportunity lies beyond generic IT services. Multibaggers are likely to emerge from IP-led, niche technology businesses with strong domain depth in mission-critical areas with sticky enterprise relationships. For long-term investors, stock selection remains key to making the most from such a turbulent phase in the IT sector.”
Published By : Shourya Jha
Published On: 19 February 2026 at 12:57 IST