The Nifty IT index rose 11.72% in the week ended 16 October 2026, its steepest weekly gain since April 2008, according to Business Standard. On Friday alone the index gained 3.92% to close at 31,924.10. The ten stocks in the index together added ₹2.75 trillion in market value over the week, of which ₹97,681 crore came on Friday.
The benchmarks
The Nifty 50 rose 0.65% on Friday to 23,146.15 and 2.78% over the week. IT shares supplied about 94 of the index's 149-point gain on the day. The Sensex gained 3.11% over the week to 74,729.27. Both benchmarks recorded a second straight weekly gain, their biggest since 10 April.
What set it off
The report ties the move to a sell-off in AI-linked shares abroad. It began on Wednesday after US inflation data; the Nasdaq Composite fell 1.88% that day, and Nvidia lost 4.9% between Tuesday and Thursday. On Thursday the selling reached Asia. South Korea's Kospi fell 7.57%, which triggered a circuit breaker on memory-chip stocks, Japan's Nikkei dropped 4.9% and Taiwan's benchmark lost 3.4%. The US 10-year Treasury yield eased to 5.086%.
Money then turned towards Indian software firms. Business Standard cites a JP Morgan report of 15 September that described India as a natural hedge against AI-related swings, pointing to a large, liquid market backed by strong domestic institutions. It noted India's weight of about 12% in the MSCI emerging markets benchmark, against about 25% for China. Softer crude oil prices, a stronger rupee and September-quarter results with upbeat management commentary were also named as supports.
Company moves
Tech Mahindra rose 8.48% on Friday and 18.22% for the week; its revenue grew 15.6% and margins widened by about 260 basis points, though net profit missed estimates. TCS gained 14.33% over the week, adding ₹1.12 trillion in market value, after reporting $9.6 billion in deal wins and saying AI accounts for more than 10% of revenue. Infosys rose 13.46% ahead of results due on 22 and 23 October. Wipro gained 5.95% on Friday and 13.43% for the week despite a profit miss and a 58.6% fall in large deal wins. HCLTech rose 13.42% after narrowing its revenue guidance to 1.6% to 3.1%.
What lagged
Pharma and healthcare trailed. Nifty Pharma fell 0.69% for the week and Nifty Healthcare 1.08%; Max Healthcare lost 4.28%. Nestlé India was the weakest Nifty stock, down 5.06% and ₹13,016 crore in market value after its September-quarter results. Yes Bank, which is outside the Nifty, fell 14.63%.
Who was buying
Foreign portfolio investors bought shares worth ₹1,166 crore on Friday, their first net purchase since 23 September, after selling about ₹13,700 crore between 9 and 15 October. Domestic institutions sold ₹3,661 crore, their first net sale since 10 August.
What boards and CFOs should note
Three points stand out for finance teams. First, one sector supplied most of the index gain on the day, so the benchmark's move says less about the wider market. Second, the report itself notes profit or deal-win misses at Tech Mahindra and Wipro even as their shares rose. Third, analysts quoted in the report, Vinod Nair of Geojit Investments and Somil Mehta of Mirae Asset Sharekhan, framed the open question as whether earnings growth can be sustained.
Source: Business Standard, 17 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
