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The rally comes after quarterly earnings from TCS and HCLTech help improve investor sentiment. Investors are also reassessing IT stock valuations after recent weakness.
IT Stocks Today.
Indian stock markets saw buying interest in IT shares on Tuesday, October 13, even as a sharp sell-off in Asian technology stocks and rising geopolitical tensions weighed on global investor sentiment. HCL Technologies, Tata Consultancy Services (TCS), Wipro, Infosys, Tech Mahindra and other IT stocks advanced in early trade. HCLTech rose nearly 5%, while TCS gained over 5%.
The rally comes after quarterly earnings from TCS and HCLTech helped improve investor sentiment towards the sector. Investors are also reassessing IT stock valuations after recent weakness.
The gains in Indian IT shares contrast with sharp declines in technology stocks across South Korea and Japan, where concerns over AI investments and intensifying semiconductor competition triggered heavy selling.
HCLTech shares jumped 4.89% to Rs 1,282.80, while TCS climbed 5.41% to Rs 2,240 in the latest market snapshot. Wipro gained 2.94% to Rs 166.56, Infosys rose 2.06% to Rs 1,041, Tech Mahindra advanced 3.32% to Rs 1,519.80, and Coforge added 2.04% to Rs 1,884.20. Newgen Software gained 4.38%, KPIT Technologies advanced 3.98%, and Persistent Systems rose 2.12%.
1. Strong Q2 Results Support IT Stocks
The latest earnings reports from HCLTech and TCS have provided a key trigger for the rally. HCLTech reported a 21.2% year-on-year increase in consolidated net profit to Rs 5,132 crore for the July-September quarter of FY27. Revenue rose 11.5% to Rs 35,620 crore, while its operating margin improved to 18.2%. The company also reported new deal bookings worth $3.26 billion and a 78% year-on-year increase in constant-currency advanced AI revenue. However, it retained a cautious outlook on demand and narrowed its FY27 revenue growth guidance to 2.5-4% in constant currency.
TCS reported a 15% increase in consolidated net profit to Rs 13,884 crore for the September quarter. Revenue rose 11.78% year-on-year to Rs 74,525 crore.
2. Relief Rally After Recent Selling
Indian IT stocks have faced pressure amid concerns about slower client spending, uncertainty over US immigration policies and the potential impact of generative AI on traditional outsourcing models. Recent weakness has also brought valuations into focus. Quarterly earnings that meet or exceed expectations can trigger short-covering and fresh buying, although a sustained recovery will depend on demand trends, deal conversion, revenue growth and companies’ ability to protect margins.
3. Why Asian Tech Stocks Are Falling
The rally in Indian IT services stocks is taking place against a much weaker backdrop for semiconductor and memory-chip companies elsewhere in Asia. South Korea’s KOSPI fell more than 7% at one point on Tuesday morning, with Samsung Electronics and SK Hynix among the major losers. Japan’s Nikkei also dropped more than 2.5%, amid selling in technology-related shares.
The weakness followed an overnight sell-off in US technology stocks and renewed concerns about competition in the semiconductor industry. Chinese memory-chip maker ChangXin Memory Technologies (CXMT) has reported progress on a new memory-cell architecture designed to increase memory density, with plans to introduce products based on the technology by the end of 2026, according to reports.
The development has raised concerns about future competition for established memory-chip manufacturers, including Samsung, SK Hynix and Micron. If new technology enables competitors to produce memory more efficiently at scale, it could eventually put pressure on pricing and profit margins. Separately, concerns about returns on massive AI infrastructure investments have increased scrutiny of semiconductor and other high-valuation technology stocks.
4. Why Indian IT Stocks Are Responding Differently
The distinction between Indian IT services companies and Asian semiconductor manufacturers is important. Memory-chip makers are directly exposed to semiconductor supply, pricing, manufacturing costs and competition from new technologies. Indian IT services companies, by contrast, generate much of their revenue by providing software development, consulting, engineering, cloud migration, business-process services and technology support to corporate clients.
CXMT’s progress could affect the economics of the memory-chip industry, but it does not automatically translate into an immediate earnings threat for Indian IT services firms. For Indian IT companies, the more immediate questions are whether global clients are increasing technology budgets, whether AI is creating new services opportunities, and whether productivity gains will be offset by pricing pressure.
Disclaimer: The views and investment tips shared in this article are for general information purposes only. Readers are advised to consult a certified financial advisor before making any investment decisions.
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Ask News18Indian IT shares rallied due to strong quarterly earnings reports from HCL Technologies and TCS, which improved investor sentiment and prompted a relief rally to reassess valuations after recent market weakness.
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Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
October 13, 2026, 10:54 IST
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