IT Stocks Today: Indian IT stocks witnessed strong buying on Wednesday, October 21, with L&T Technology Services leading the rally after reporting robust second-quarter results. Moreover, a bullish outlook for the sector by global brokerage house Jefferies also added to the positive sentiment.
The Nifty IT index climbed as much as 2.6% to an intraday high of 32,348.25, significantly outperforming the benchmark Nifty 50, which gained around 1%. All IT constituents traded in positive territory, suggesting that the buying extended beyond individual earnings announcements.
L&T Technology Services (LTTS) surged as much as 15%, while Wipro advanced 4%. Infosys, Tata Consultancy Services (TCS), Tech Mahindra, HCL Technologies and Mphasis gained between 2% and 3.5%. Persistent Systems, LTIMindtree (LTM) and Coforge also rose more than 1% each.
A strong start to the second-quarter earnings season has helped improve sentiment towards IT companies, with investors responding to better-than-expected results and signs of stabilisation in business conditions. TCS and HCL Technologies have also reported earnings above expectations, offering some reassurance amid concerns about technology spending and the disruptive impact of AI.
L&T Technology Services emerged as the standout performer after reporting higher revenue and profitability for the September quarter.