The Nifty IT index surged 3.3% on October 13, 2026, led by HCL Technologies. The company reported a 21.2% rise in net profit and record deal bookings of $3.3 billion, fueling optimism for AI-led growth. Investors are now weighing these gains against broader macro risks and regulatory challenges in the US.
The Nifty IT index climbed 3.3% during the trading session on October 13, 2026, leading the sector higher as investors reacted to strong quarterly results from HCL Technologies. The positive sentiment rippled across the technology sector, with major players like Tata Consultancy Services, Wipro, and Tech Mahindra seeing notable gains as the market looked for signs of a turnaround in demand.
HCL Technologies, which served as the primary catalyst for the rally, reported a consolidated net profit of ₹5,132 crore for the second quarter of the fiscal year 2027, marking a 21.2% increase compared to the same period last year. A key highlight for the company was its Advanced AI services segment, where revenue grew by 78% year-on-year to reach $219 million. The company also announced a record $3.3 billion in new deal bookings, signaling that client spending on digital modernization and efficiency projects remains active.
Following these results, the company adjusted its revenue growth guidance for the fiscal year 2027 to a range of 2.5%–4% in constant currency. While the immediate market reaction was positive, with HCL Tech shares rising significantly, the rally also lifted other IT stocks that had been under pressure throughout the year.
Despite the optimism, analysts are maintaining a balanced view on the sector's long-term trajectory. While deal bookings are strong, some market observers have flagged concerns regarding slowing organic growth and the performance of legacy software business segments. Macroeconomic volatility remains a factor, as companies continue to watch how seasonal budget cycles in global markets might impact IT spending.
Furthermore, the sector faces specific regulatory risks, including recent discussions in the United States regarding employment-based green card programs, which could impact operational costs and talent management for Indian IT firms. Investors are currently weighing the excitement around AI-led revenue against these persistent headwinds. Going forward, the most important monitorables for shareholders will be the actual conversion of these record deal bookings into revenue and the company’s ability to maintain profit margins amid global economic shifts.