Nifty IT jumps 11.7% in strongest weekly rally since 2008

India’s Nifty IT index gained 11.7% in the week ended October 16, its strongest weekly advance since April 2008, Economic Times Markets reported. The index rose 3.9% on Friday to finish at 31,924, as better-than-expected September-quarter earnings and improving deal prospects brought investors back to software services stocks.

The rebound contrasted with declines in semiconductor-heavy Asian markets, where concerns about returns on large artificial-intelligence investments weighed on shares. India’s outsourcing companies attracted buying after a prolonged correction had made their valuations more appealing, according to the report.

Earnings and deals support the recovery

Ravi Singh, chief research officer at Master Capital Services, attributed the rally to stronger-than-expected quarterly results, particularly at HCLTech, better deal prospects and value buying. The report also pointed to Accenture’s strong performance and outlook as a supportive backdrop for the sector.

The earnings picture suggested some stabilisation after nearly two years of cost restraint and subdued growth. The report put average quarter-on-quarter growth at 2–2.5% and year-on-year growth in rupee-reported revenue at 11–15%.

The sharp rise has not erased the sector’s losses. Nifty IT was still down 16% year-to-date after Friday’s close. The broader Nifty gained 2.8% over the week, substantially less than the technology index.

Hiring returns, but the picture is uneven

Employment figures offered another indication of improving activity. TCS brought in 24,000 freshers during the first half of the year, while HCLTech added 6,450 employees in the September quarter. Fresher intake and net headcount additions are different measures and should not be treated as directly comparable.

The report said TCS, HCLTech, Tech Mahindra and LTM, formerly LTIMindtree, together added 17,100 employees in the second quarter before accounting for Wipro’s headcount reduction. Wipro cut its workforce by 6,700.

Infosys was excluded from the latest employment calculations because it had not yet released its manpower figures. Its earnings announcement was scheduled for October 23, leaving the sector’s September-quarter hiring picture incomplete.