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Shares of leading IT companies surged on October 6, driven by investor optimism ahead of the Q2FY26 earnings season; Key points for investors
Why are IT stocks rising today?
IT Stocks Rally: Shares of leading IT companies surged on October 6, driven by investor optimism ahead of the Q2FY26 earnings season. The rally pushed the Nifty IT index up nearly 2 per cent, making it the top-performing sector of the day.
The index climbed to 34,556.15, extending its winning streak for the third straight session. Over these three sessions, the index has gained nearly 3 per cent—more than 900 points in total.
Top Gainers in the IT Pack
Among individual stocks, LTIMindtree led the rally with gains of nearly 3 per cent. Persistent Systems and Tata Consultancy Services (TCS) advanced over 2 per cent each, while Coforge, Tech Mahindra, and Mphasis added around 2 per cent apiece.
HCL Technologies gained over 1 percent, while Infosys and Wipro each rose about 1 percent. This upward momentum follows a recent slump in IT stocks triggered by US President Donald Trump’s announcements on H-1B visa fee hikes.
Q2FY26 IT Earnings Calendar
The earnings season for IT firms will commence with TCS, which is set to announce its July-September quarter results on October 9. Tech Mahindra and Persistent Systems will release their results on October 14. Infosys and LTIMindtree will follow on October 16.
Analysts’ Outlook on the IT Sector
According to HDFC Securities, the IT sector is likely to post subdued revenue growth in what is typically a strong quarter due to persistent global macroeconomic uncertainty and recent US tariff measures weighing on discretionary spending.
The brokerage noted that while the H-1B visa fee hike is unlikely to disrupt operations immediately, it could drive up onsite costs and accelerate offshoring in the longer term. Margins, however, are expected to get some support from the rupee’s depreciation, which will help offset wage hikes amid muted hiring trends.
HDFC Securities remains “cautiously optimistic,” favoring Infosys and HCL Tech among tier-1 companies, while preferring Persistent Systems, Tata Elxsi, and Mastek in the mid-tier segment.
Elara Capital highlighted that client spending remains under pressure due to ongoing tariff issues and regulatory changes around H-1B visas. Although dependence on H-1B visas has reduced to about 10-15 percent of the onsite workforce, it could still lead to short-term delays in deal signings.
The brokerage expects Infosys and HCL Technologies to maintain their FY26 revenue growth guidance at 1-3% and 3-5%, respectively. It also anticipates mid-cap IT firms to outperform large caps this quarter.
Axis Securities expects the IT services sector to post moderate growth in Q2FY26, citing muted demand, a steady but cautious deal pipeline, and macroeconomic uncertainties including Trump tariffs, H-1B visa curbs, the proposed US HIRE Bill, and trade tensions.
The brokerage added that recent corrections in large- and mid-cap IT stocks have made valuations more attractive, creating a favorable risk-reward setup for investors and offering fresh buying opportunities.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 06, 2025, 14:51 IST
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