Nifty IT Surges 11.5% in 18-Year Record Week, Adding $30 Billion as TCS and Infosys Beat

The Quick Take

• Nifty IT surges 11.5% in biggest weekly gain in 18 years, adding $30 billion in market cap.
• Q2 FY2027 earnings beats from TCS, Infosys, and HCL Tech trigger broad IT sector re-rating.
• Weak rupee at Rs 84.5/USD and robust US enterprise AI demand fuel the outperformance.

India's Nifty IT index delivered its largest single-week gain in 18 years, surging approximately 11.5% over the week ending October 17 and adding an estimated $30 billion in total market capitalisation across the sector. The explosive rally was ignited by a series of strong Q2 FY2027 earnings beats from India's top-tier IT exporters, which reported better-than-feared revenue growth, improving deal win momentum, and a return to volume-led growth after several quarters of cautious client spending. TCS, Infosys, and HCL Technologies all delivered revenue guidance upgrades or narrowed their growth bands toward the positive end, sending analysts scrambling to raise price targets.

The sector's recovery is underpinned by a confluence of favourable factors: the US dollar has strengthened against the Indian rupee to approximately Rs 84.5 per dollar, directly boosting rupee-denominated revenues and margins for IT exporters whose cost base is predominantly rupee while contracts are billed in dollars. Additionally, US enterprise technology spending — which had been muted through 2025 as corporates digested cloud migration investments — is showing renewed activity, particularly in artificial intelligence integration projects, data analytics infrastructure, and cybersecurity modernization. Large deal TCV disclosures for the quarter were the strongest in six quarters.

Foreign Portfolio Investors, who had been net sellers of Indian IT stocks for much of 2025-2026 amid global tech sector rotation, returned as buyers this week, adding to momentum from domestic mutual fund purchases. The Nifty IT's outperformance lifted the broader Nifty 50 benchmark and contributed to the Sensex's Friday advance. Technical analysts note that the Nifty IT index has decisively broken above its 200-day moving average and year-to-date resistance levels. The magnitude of the weekly move raises near-term consolidation risk; investors will closely watch US tech spending data and rupee levels heading into November.

Synthesized from 2 sources.