IT stocks witnessed a strong rebound on Thursday, snapping a four-session losing streak as investors returned to beaten-down technology counters. The Nifty IT index emerged as the top-performing sectoral gauge of the day, with all its constituents trading in positive territory.
The rally came after weeks of sustained selling that has made 2026 one of the sector’s weakest years in recent decades, amid concerns over artificial intelligence-led disruption, slowing global technology spending and continued foreign institutional investor (FII) outflows.
Coforge, Mphasis And Infosys Lead The Gains
Mid-cap IT stocks spearheaded the recovery, with Coforge jumping 4.35% to Rs 1,430.30, making it the biggest gainer on the Nifty IT index.
Mphasis climbed 3.99% to Rs 2,211.60, while Infosys rose 3.97% to Rs 1,024.40, leading gains among large-cap technology companies.
Other major gainers included:
- Persistent Systems: Up 3.51% to Rs 4,482.40
- HCL Technologies: Rose 3.48% to Rs 1,070.20
- Tata Consultancy Services (TCS): Added 2.48% to Rs 2,031.70
- Tech Mahindra: Advanced 2.08% to Rs 1,390.60
Oracle Financial Services Software and Wipro also traded firmly in the green, reflecting the broad-based nature of the recovery across the sector.
Sector Rebounds After Sharp 2026 Correction
Thursday’s rally follows a prolonged sell-off that has weighed heavily on Indian IT stocks throughout 2026.
Investor sentiment has remained under pressure due to multiple factors, including:
- Concerns that generative AI could disrupt the traditional IT services business model.
- Weak discretionary technology spending by clients, particularly in the United States.
- Conservative demand outlooks from global technology companies.
- Valuation compression across the sector.
- Persistent selling by foreign institutional investors.
These headwinds have pushed several frontline IT stocks to multi-year lows.
Buyback Speculation Returns To The Fore
The steep correction has also renewed investor interest in the sector’s strong cash positions and the possibility of fresh shareholder payouts through buybacks.
Recent buyback programmes by Infosys and Wipro witnessed overwhelming participation from shareholders.
However, both stocks are now trading significantly below their respective buyback prices:
- Infosys currently trades nearly 45% below its November 2025 buyback price of Rs 1,800.
- Wipro is trading about 32% below its June 2026 buyback price of Rs 250.
The sharp decline has fuelled speculation that some IT companies could consider another round of share repurchases.
TCS In Focus For Potential Buyback
Among the major IT firms, Tata Consultancy Services (TCS) is attracting particular attention because of its consistent record of rewarding shareholders through buybacks.
Since 2017, TCS has completed five large share buybacks, typically offering premiums ranging between 10% and 18% over prevailing market prices.
The company’s strong financial position further supports such expectations. As of FY26, TCS reported cash and cash equivalents exceeding Rs 50,000 crore, giving it ample room for capital allocation initiatives if management chooses to pursue another buyback.
While no announcement has been made, the combination of depressed valuations and robust cash reserves has reignited market speculation around shareholder-friendly measures across the IT sector.