What may turn Nifty IT into a dark horse? Anil Singhvi's take

The Nifty IT index surged nearly 3 per cent in early trade on Friday, emerging as one of the top sectoral performers on Dalal Street. The rally came after strong quarterly results and upbeat guidance from large IT companies, led by Infosys.

At around early trade, Nifty IT was trading near 42.63, up 1.21 points or 2.92 per cent.

With earnings momentum improving and guidance upgrades coming through, IT stocks are once again drawing investor attention on Dalal Street.

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Infosys, MphasiS among top gainers

Buying was seen across major IT stocks. Infosys jumped nearly 5 per cent and was among the top gainers in the index. MphasiS rose over 4 per cent, while Tech Mahindra gained more than 3 per cent. LTIMindtree and Oracle Financial Services Software also advanced over 3 per cent each.

Wipro climbed over 3.5 per cent, while Coforge and Persistent Systems were up over 2 per cent. HCL Tech added over 1.5 per cent.
TCS traded marginally higher.

What is driving the rally in IT stocks

Market sentiment improved after Infosys reported strong Q3 FY26 results and raised its constant currency revenue growth guidance for FY26 to 3 per cent–3.5 per cent, from 2 per cent–3 per cent earlier. The company also reported better-than-expected revenue growth and stable margins.

TCS results were largely in line with estimates. The company retained its FY26 guidance and reported steady margins. Brokerages remained positive on both stocks, citing stable demand and improving deal pipelines.

Anil Singhvi’s view: IT may turn dark horse

Zee Business Managing Editor Anil Singhvi said IT stocks could see re-rating after the recent results. He said Infosys delivered “outstanding” numbers with strong guidance, while HCL Tech results were better than expected. According to him, if Wipro and Tech Mahindra also post good results, the Nifty IT index could turn into a dark horse for the market.

Singhvi remains positive on Infosys and Persistent, citing strong deal pipelines, improved guidance and AI-led opportunities. He said the strong performance by large IT firms is a positive trigger for the sector in the near term.

Brokerage outlook remains supportive

Global brokerages continue to back frontline IT stocks. JP Morgan maintained an overweight rating on TCS and raised its target price to Rs 4,200. The brokerage also reiterated its overweight call on Infosys and increased the target price to Rs 2,050, citing improving growth visibility and stable margins.