Infosys, TCS, HCL Tech, other IT stocks rally up to 3%. 2 major reasons why

Published 17 July 2026 · finance

Shares of IT majors Infosys, TCS, HCL Tech, Tech Mahindra, and others rallied up to 3.3% on Friday, buoyed by a better-than-expected first quarter from

Shares of IT majors Infosys, TCS, HCL Tech, Tech Mahindra, and others rallied up to 3.3% on Friday, buoyed by a better-than-expected first quarter from Tech Mahindra. Infosys led the gains among IT stocks, rising 3.3% to Rs 1,117, while HCL Tech climbed 3% to Rs 1,221. Tech Mahindra advanced 3.4% to Rs 1,563, and TCS gained 2.5% to touch an intraday high of Rs 2,256. Midcap IT firm Persistent Systems also added over 1%. On the other hand, Wipro fell more than 3% following its weak Q1 performance, while Oracle and Coforge declined over 1% each. The broad-based gains pushed the Nifty IT index up 658 points, or 2.3%, to 29,381.Also read: TCS' next growth phase hinges on AI investments, not just deal momentum1.) Tech Mahindra Q1 gets brokerages’ thumbs upNomura noted that Tech Mahindra delivered an all-round beat on estimates in Q1 FY27. Its sequential CC revenue growth of nearly 3% QoQ to $1,660 million beat the international brokerage’s estimate of a mere 1%. growth. The increase was broad-based across all key verticals. EBIT margin at 14.4% was ahead of Nomura’s estimate of 14.1%.

Margin expansion was largely driven by the ongoing Project Fortius and currency depreciation, it added.Saying that Tech Mahindra is now on track to exceed its large-cap peers on growth rates in FY27-28, Nomura increased its target price for the stock to Rs 1,600 apiece from Rs 1,400 apiece, while maintaining its ‘Neutral’ rating. The latest target price implies an upside potential of 6% from the stock's previous closing price of Rs 1510.3 apiece on NSE. Nuvama also highlighted that Tech Mahindra’s earrings beat mostly beat its estimates, although reported profit was slightly below its expectation. “TechM delivered a strong start to FY27 with broad-based growth, continued margin expansion and robust deal-wins, setting the stage for the final phase of its transformational journey,” it said, while upgrading its FY27 and FY28 earnings estimates for the IT services firm.Read more: Tech Mahindra Q1 Results: Net profit rises 28% YoY to Rs 1,465 crore, revenue up 18%The brokerage retained its ‘Buy’ rating for the shares of Tech Mahindra, but increased its target price to Rs 1,800 apiece from Rs 1,750 apiece. The latest target price implies an upside potential of nearly 16% from the stock’s previous closing price.Motilal Oswal Financial Services said that Tech Mahindra’s FY27 growth visibility has improved, with margins on track.

“We believe this quarter brings a material step-up in Tech Mahindra’s growth trajectory, with growth expectations moving from ~3-5% to ~6-7% over the next couple of years. If this momentum sustains, it could warrant another round of re-rating,” it said. 2.) HCL Tech 7-year deal winThe IT services company announced a new seven-year agreement with The Guardian Life Insurance Company of America (Guardian), expanding their existing partnership to accelerate AI-led modernization across the insurer's technology and operations.Under the expanded agreement, HCLTech will help Guardian scale its AI-powered transformation to support long-term business growth. The partnership aims to improve efficiency, accelerate value creation, reduce operational friction and develop AI-led solutions and intellectual property for the insurance industry.Wipro Q1 weak, brokerages cut target priceNomura maintained its Buy rating on Wipro while cutting the target price to Rs 190 from Rs 200, an upside of 6.7%. The brokerage said Wipro delivered a subdued Q1FY27, with constant currency revenue declining 1.2% QoQ, in line with expectations, while EBIT margin of 16% missed its estimate of 16.5%. Also read: HCL Tech shares rally over 3% after signing 7-year deal with Guardian Life InsuranceNuvama retained its Buy rating on Wipro but lowered the target price to Rs 210 (18% upside) from Rs 255 after weak Q1 results and softer-than-expected Q2 guidance.