NIFTY IT gives up intraday gains, but sector posts sharp monthly recovery

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SENSEX 72,562.65

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TCS led the pack with a gain of 1.16% to ₹2,536, while Infosys added 0.21% to ₹1,155 and HCL Tech was nearly flat

By Anupama Ghosh

Updated - October 23, 2026 at 01:13 PM.

The NIFTY IT index was trading marginally lower at 32,027, down 54 points or 0.17 per cent, by midday on Friday, with seven of ten constituents in the red despite a strong one-month recovery of over 13 per cent in the index. The IT gauge had swung between 31,144 and 33,138 intraday, reflecting volatile sentiment ahead of the quarterly results season.

TCS led the pack with a gain of 1.16 per cent to ₹2,536, while Infosys added 0.21 per cent to ₹1,155 and HCL Tech was nearly flat. On the losing side, OFSS fell 2.40 per cent and LTM shed 2.32 per cent, while Tech Mahindra dropped 1.38 per cent. Advancers numbered just three against seven decliners.

The index’s three-month return of 12.24 per cent and monthly return of 13.03 per cent signal a recovery from a prolonged downturn, though the YTD loss of 16.10 per cent and one-year decline of 11.23 per cent underline that the sector remains significantly off its 52-week high of 40,301.

HDFC Securities, in its Q2FY27 results preview earlier this month, flagged a muted quarter for Indian IT, projecting tier-1 QoQ constant-currency growth between -0.4 per cent and +2.0 per cent. The brokerage flagged soft deal wins, cautious client decision-making, and AI-led pricing pressure as persistent headwinds. It noted valuations remain near historical lows, with the sector’s one-year forward P/E at 16.5x against a 10-year average of 21.8x. The NSE currently shows the index P/E at 19.85x.

HDFC Securities maintained BUY on Infosys with a target price of ₹1,250, and preferred Persistent Systems and Mphasis among mid-caps. It downgraded Birlasoft to ADD and upgraded Cyient to BUY.

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Companies to follow

• Tata Consultancy Services Ltd
• Infosys Ltd
• HCL Technologies Ltd
• Tech Mahindra Ltd

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