Nifty IT Is Up for a Third Day at 30,805: Is the Rally Running Ahead of Wipro and Tech Mahindra?

The quick take: Indian IT stocks are leading a broad rebound on Thursday, October 15. Nifty IT was up about 2.1% at 30,805.70 by 10:28 AM IST, its third straight gain, and the move came on the day Wipro and Tech Mahindra were due to report Q2 FY27 numbers. All figures below are as of late morning and will have moved since.

What happened

By around 11:00 AM IST the Sensex was up 1,062 points (1.46%) at 73,844.10 and the Nifty 50 was up 310 points (1.37%) at 22,932.80. Business Standard linked the move to lower oil prices easing worries about persistent inflation, with Brent down about 1%. Tech Mahindra, Tata Consumer Products and TCS were among the top Nifty gainers, and Nifty Auto also firmed. Nifty PSU Bank was the weakest sector.

The IT rally did not start today. On October 13, Nifty IT jumped about 4.4% to around 29,582 intraday after TCS and HCLTech results. HCLTech reported net profit up 21.2% year on year to ₹5,132 crore and revenue up 11.5% to ₹35,620 crore, and its shares rose over 7% that day. TCS gained about 6%. Since then the index has added roughly another 4% by this morning’s level.

Why it matters

Two supports stand out. First, the rupee: it strengthened to about 94.95 per dollar early on October 15, from 95.15 at the open, which matters for a sector that earns in dollars. Second, expectations. Tech Mahindra rose roughly 9% over two sessions from an October 12 low of ₹1,442, to about ₹1,627 before its results, according to Upstox. Its board was due to consider an interim dividend and bonus shares; a bonus issue was widely expected but, at the time of writing, not confirmed. Analysts cited by Upstox were looking for profit of ₹1,530-1,580 crore, up 28-32% year on year. Those are estimates, not reported results.

Wipro’s preview was more muted. Kotak Neo’s preview pointed to revenue up about 9% and profit up about 2% year on year, with investors focused on December-quarter guidance. A rally that has already run this far can leave less room for disappointment on guidance.

Key levels and numbers

Nifty IT: 30,805.70 (+2.10%) at 10:28 AM. Nifty 50: 22,932.80. Sensex: 73,844.10. Breadth was mixed: Nifty Midcap was up 0.27% while Nifty Smallcap was down 0.66% at 11:00 AM, with several smallcap names sliding after results. Canara Bank fell about 7% after its Q2 operating profit rose only marginally, hurt by lower treasury income.

There is one policy overhang. A US suspension of PERM applications touches TCS, Infosys, HCLTech, Wipro and peers. Kotak Institutional Equities said it does not expect a meaningful impact on delivery or earnings.

What to watch next

First, the actual Wipro and Tech Mahindra prints against the previews above, especially guidance and any bonus or dividend decision. Second, HCLTech’s interim dividend of ₹12 per share, with a record date of October 16. Third, Infosys and Coforge, both due to report on October 23. Finally, whether the Nifty’s recovery holds if oil reverses, since today’s rally leaned on cooling crude. Note that FII/DII flow figures for today were not available in the sources reviewed.

Sources

Disclaimer: This post is for educational and informational purposes only and is not investment advice. Consult a SEBI-registered advisor before investing.

#niftyit #NiftyBank #Nifty50 #NSE #BSE #TradingTips #TradingSetup #trending #TradingDiscipline #stocktrading #StockInFocus #StockToWatch #Q2FY27 #Q2Results #ITStocks #Sensex #Rupee #BrentCrude #TCS #Infosys #HCLTech #TechMahindra #Wipro

The Conviction And The Caution