The Nifty IT index surged 11.5% to 23,146 on Friday, the biggest weekly climb since 2008, eclipsing the broader market’s 1.2% gain in the same week. Analysts had projected an 8.2% rise, according to BloombergNEF.
Tech Mahindra led the rally, posting a 19% gain after announcing a 12% dividend and a Q2 revenue of ₹14.5 billion, while Tata Consultancy Services jumped 19% since its October 8 earnings bulletin. Infosys added 12% and HCL Technologies climbed 10%, pushing the sector’s average margin to 26% YoY.
In contrast, the Nifty FMCG index slipped 1.5%, with Nestle India down 3% and Max Healthcare 2.7%. Midcap exposure saw the Nifty Midcap index fall 67 points to 59,130, though a handful such as KPIT Technologies surged 8% after a new contract win.
The broader market closed up 1.2%, with the Sensex at 74,729 after a 413‑point gain, while the Nifty Bank index barely budged, up 33 points to 55,844. The rally coincided with the RBI’s upcoming policy meeting in November, adding a layer of uncertainty for the IT sector.
Investors now focus on Q2 earnings releases scheduled from mid‑November, with TCS, Infosys, and Wipro all set to report. Market watchers also keep an eye on the upcoming capital expenditure announcements from government infrastructure plans, which could further buoy IT demand.