Nifty IT adds Rs 2.6 lakh crore in best weekly surge in 18 years

Indian information technology shares staged a record-setting comeback this week, adding Rs 2.60 lakh crore in market valuation and delivering their sharpest weekly advance in 18 years.

The Nifty IT index surged by nearly 12% over the five trading sessions, reclaiming the 30,000 milestone and touching an eight-month high. The turnaround helped Dalal Street log its strongest weekly performance in six months, demonstrating the resilience of India's foundational services economy even amid global volatility.

The sharp rebound has already helped the software sector retrace roughly half of its previous 2026 losses. Investor demand returned in force following stronger-than-anticipated September-quarter earnings across the industry's flagships, which offered clear evidence that operational health, enterprise demand, and large deal pipelines remain sturdy.

How top IT stocks performed this week

Heavyweight counters led the recovery, with six of the ten constituents on the benchmark IT index advancing by double digits.

Strong corporate fundamentals lead the charge

The foundation for the rally was laid by reliable domestic corporate delivery. Tata Consultancy Services, the country's largest IT exporter, posted a 15% year-on-year jump in consolidated net profit for the second quarter to Rs 13,884 crore, compared with Rs 12,075 crore in the corresponding period last year.

TCS declared a second interim dividend of Rs 12 per share, while maintaining a healthy operating margin of 24% and a net margin of 19%. Chief Executive Officer and Managing Director K. Krithivasan noted that the company recorded broad-based growth across international markets and most industry segments.

Tech Mahindra and Wipro both reported revenue figures that beat street expectations, supported by fresh contract sign-offs. HCL Technologies reinforced confidence through steady earnings and growing traction in deployed enterprise artificial intelligence engagements.

Shift away from global AI speculation

The rally coincided with a sharp reassessment of international technology markets. More than $1 trillion in market value evaporated from 20 of the world's most valuable artificial intelligence and semiconductor firms during the week, as investors questioned high infrastructure capital expenditure and stretched valuations.

By contrast, Indian software service providers demonstrated tangible cash generation, steady margins, and disciplined capital allocation. V.K. Vijayakumar, chief investment strategist at Geojit Investments, noted that solid corporate numbers and constructive management guidance triggered a sharp recovery that provides fundamental support to the wider national market.

While market desks caution that short-term volatility or profit-booking cannot be ruled out following such an abrupt climb, the week's performance highlights the enduring operational strength of India's corporate software sector.