Nifty IT posts best weekly gain in 18 years as Q2 earnings revive investor interest; which stocks led the rally?

It reclaimed the 30,000 mark and also touched an eight-month high.The recovery has also helped the stock recoup nearly half of its 2026 losses, after it had fallen 32%. The index’s year-to-date decline now stands at 15.7%. Alongside, the recovery rally has boosted confidence on Dalal Street, helping the Nifty post its best weekly performance in six months.Q2 earnings revive hopes of a recoveryThe rally has provided a much-needed boost to a battered sector that had been plagued by fears of AI-driven disruption, concerns over interest rates, and sustained foreign institutional investor (FII) selling, dragging several constituents to multi-year lows.However, the September-quarter results have offered investors some reassurance about the sector’s near-term growth prospects, helping revive sentiment towards IT stocks.Stronger-than-expected performances from major companies have also eased some concerns over slowing demand and the potential impact of artificial intelligence on traditional software services.Tech Mahindra’s second-quarter revenue came in above expectations, aided by robust deal wins, while Wipro also reported stronger-than-expected quarterly revenue, with signs that delayed large deals could support growth in the coming quarters.HCL Tech’s quarterly performance, stronger AI-related revenue, and healthy deal wins bolstered confidence in the sector’s earnings outlook.

TCS also delivered a healthy set of numbers for the second quarter.The recent rally suggests that investors are reassessing valuations and returning to the sector after a prolonged sell-off. Whether the rebound can sustain its momentum will depend on the outlook for revenue growth, deal wins, client spending, and the extent to which IT companies can translate AI-related opportunities into meaningful business growth.Disclaimer: We advise investors to check with certified experts before making any investment decisions.