Technology-sector equities maintained their upward trajectory for a fourth consecutive session, with the Nifty IT index holding in positive territory as companies across the industry posted September-quarter results for FY27 that either met or exceeded analyst expectations. Over the six trading sessions that followed Tata Consultancy Services releasing its second-quarter earnings, the Nifty IT index posted a gain of 14 per cent.

Trading in the IT index reached its highest point in over a year, touching a level not seen since 12 August 2026. At 10:12 AM on Friday, the Nifty IT index outpaced all other sectoral gauges, recording a 2.8 per cent gain while the broader Nifty 50 moved up by a comparatively smaller 0.32 per cent over the same period.

Tech Mahindra's stock advanced by up to 7 per cent in intraday trade on the NSE, touching ₹1,769, after the company posted second-quarter results that outpaced analyst forecasts. The share price reached ₹1,854 on 3 February 2026, its highest point across a full year of trading.

Wipro's stock advanced 6 per cent to reach ₹185.14 after executives pointed to a healthy order pipeline, with particular momentum noted in the BFSI and Technology verticals, as well as broadening demand tied to AI-driven transformation work. Gains of roughly 2 to 3 per cent were recorded across Oracle Financial Services, HCL Technologies, LTM, and Mphasis, while Infosys and TCS each climbed 4 per cent. Over the six most recent trading sessions, shares of TCS, Tech Mahindra, Wipro, Infosys, and HCL Tech each posted gains that ranged from roughly 16 per cent to about 19 per cent.

Revenue at Tech Mahindra climbed across most of its business verticals and held up in multiple regions during the latest reporting period. Among the factors put forward were sustained improvement in profit margins and a pipeline of deals maintaining its pace, with the scaling up of larger contracts — the Orange agreement in the communications segment among them — adding further weight.

A fiscal 2027 EBIT margin goal of 15 per cent remained on the table, with leadership pointing to ongoing efforts to outpace industry growth rates through AI-driven operational changes and the productivity work being carried out under Project Helix. Broader rollouts are taking shape as customers move past the pilot stage, and the company has indicated it plans to begin breaking out AI-related revenue as a separate line item from the second half of fiscal 2027.

Quarterly revenue in the manufacturing segment slipped 3.9 per cent against the prior period, an outcome tied to front-loaded delivery on a sizeable European automotive contract the quarter before, with leadership projecting an additional sequential drag of around 50 basis points when third-quarter results are tallied. Payroll increases absorbed potential margin gains, though the company's leadership told ICICI Securities it still sees room to push gross margins higher.

Deal activity and day-to-day execution have kept the trajectory on course, while those running the business anticipate that the second half will follow its typical seasonal pattern without any unusual workforce suspensions.

Quarterly profitability at Wipro edged up 40 basis points from the prior period, with the EBIT margin for Q2FY27 landing at 16.4 per cent — a gain attributed to leaner operations and a weaker rupee, though continued spending on artificial intelligence technology partially absorbed those tailwinds. The figure came in close to the 16.5 per cent forecast that analysts at a well-regarded financial institution had put forward.

The pay rise that took effect on 1 March 2026 weighed on first-quarter margins, according to management, which added that ongoing operational improvements are expected to push those margins back up over time. Earnings-per-share projections for FY27 and FY28 were revised upward by between 5.2 and 5.5 per cent, a shift attributed to the reduced outstanding share count that followed the completion of a buyback programme. Wipro's valuation target moved upward to ₹200 from a prior ₹190, with the underlying earnings multiple held steady at 14x against FY28 EPS estimates.

The Nifty 50 posted a cumulative advance of 780.75 points across four consecutive sessions, putting the index ahead of comparable benchmarks tracked over the same period. Measured against its 52-week trough of 22,179.90 — a floor last reached on 8 October 2026 — the index has since added 964.1 points, a gain that works out to 4.3 per cent.

Three forces underpinning the market's relative resilience, according to Geojit Investments Chief Investment Strategist V K Vijayakumar, are a cooling of enthusiasm toward artificial intelligence-linked stocks, expectations that the upcoming Budget could alter the tax treatment applied to long-term capital gains, and a run of second-quarter results that have topped analyst forecasts and appear positioned to carry that outperformance forward. Quarterly earnings beats across the IT sector, paired with upbeat forward guidance from company executives, pushed the IT index up around 9 per cent — a move that helped underpin broader steadiness in the Nifty.

V K Vijayakumar suggested that a dip in the US 10-year bond yield to 5.07 per cent could act as a brake on foreign portfolio investor sell-offs, particularly when combined with the rupee's recent strengthening. Selling pressure, he added, looks set to persist for as long as the 10-year yield holds above 5 per cent and Brent crude remains north of $100.

Purchasing activity in large-cap stocks has been driven by investors seeking value at current price levels. According to V K Vijayakumar, positions being unwound in that segment have the potential to push the prevailing movement further along.