Nifty IT jumped 5.2% after HCLTech profit beat

India’s Nifty IT index jumped 5.2% on Tuesday, its strongest one-session advance in roughly 17 months, after HCL Technologies reported September-quarter earnings, The Economic Times said in an Oct. 14 market report.

The rebound gave investors a sharp reprieve in a sector the newspaper said remains down more than 21% so far, compared with a 13% decline in the Nifty. The broader Nifty 50 rose 1.6% to 22,721.95, while the Sensex added 1.54% to 73,033.78.

HCL Technologies led the 10-member technology gauge with an 8.42% gain. Tata Consultancy Services rose 6.8%, Coforge gained 4.46% and Infosys advanced 4.13%, according to the report.

HCL Technologies’ second-quarter net profit rose 21.2% from a year earlier and exceeded analyst expectations, The Economic Times said. The result helped counter worries that artificial-intelligence adoption may hurt demand and pricing for traditional software-services work.

"For the Indian IT sector, the pace of global AI adoption over the next 2-3 years remains a key concern for earnings growth and valuations," Krishna Sanghavi, CIO Equity at Mahindra Manulife Mutual Fund, told the newspaper. "However, if questions arise globally around the commercial viability of AI, potentially slowing its rollout, market concerns over Indian IT companies could ease."

The report said selling in Asian semiconductor shares, linked to concern about whether heavy AI investment can generate adequate returns, also helped sentiment toward Indian IT companies. That interpretation matters because investors have treated software-services providers as exposed to AI disruption, while chipmakers have benefited from AI infrastructure spending.

Currency moves added a second support for the sector. The Economic Times said a stronger dollar helped Indian IT exporters, which earn a large share of revenue in foreign currencies; a weaker rupee can increase the value of overseas sales when converted into local currency.

Technical analysts cited by the newspaper said the index had also broken above a recent trading band. Sudeep Shah, head of technical and derivatives research at SBI Securities, said the Nifty IT index had moved past the 27,614-to-28,755 range where it traded from Sept. 24 to Oct.

12.

"The RSI is trending higher and approaching the 60 mark, signalling renewed bullish momentum. The zone of 28,600-28,500 is likely to act as immediate support, and the index may extend its pullback as long as it sustains above this zone," Shah said. RSI refers to the relative strength index, a gauge traders use to assess price momentum.

The rally does not settle the earnings debate. Gaurav Garg, head of research at Lemonn, told the newspaper that the sector may stay positive in the near term after HCLTech’s results, but cautioned that a strong one-day move can invite selling.

"The sector may remain positive in the near term, supported by improving sentiment and buying interest following HCLTech's results, but after a sharp single-day rally, some profit-booking and volatility cannot be ruled out," Garg said.

Garg advised investors not to chase the rally and to focus on companies with earnings visibility, deal conversion and stable margins, according to The Economic Times.

Source: market report, The Economic Times, Oct. 14, 2026