Nifty IT Records Sharpest Single-Day Rally in 7-Months Led by Infosys; Check Why It’s Rallying

The IT index began the session on a positive note, and the buying only gathered pace as the day progressed. By midday, the Nifty IT index had pushed to a fresh three-week high and also marked its sharpest single-day rally in nearly seven months, reflecting broad-based confidence within the sector for the day.

What’s Driving the Nifty IT Rally Today?

The primary trigger behind Friday’s jump in the Nifty IT index is Infosys’ Q3FY26 earnings announcement, which set the tone for the sector.

Infosys share price surged over 5% after the company reported its quarterly results, taking the stock close to its swing high recorded in December 2025. The reaction was also visible globally, as Infosys’ ADRs gained nearly 10% on Wall Street, which acted as an early signal of positive sentiment before Indian markets fully priced in the news.

Infosys Q3FY26: Steady Growth and Guidance Upgrade

Infosys reported steady sequential growth, supported by:

• Strength in the healthcare segment
• Ramp-up of large deals
• Continued momentum in large deal wins, even in what is typically a seasonally softer quarter

More importantly for investors, the company raised its FY26 constant currency revenue growth guidance to 3%–3.5%, up from the earlier band of 2%–3%. This upgrade added credibility to the near-term demand outlook and helped support a stronger re-rating for the stock during the session.

Deal activity also remained firm. Infosys reported $4.8 billion in deal wins during the third quarter, with 57% classified as net new, indicating a healthy pipeline rather than just renewals or extensions.

Broad-Based Buying: All Nifty IT Constituents Trade in the Green

The rally was not limited to a single stock. Every constituent of the Nifty IT index was trading in the green on Friday, highlighting strong sector-wide participation.

Key gainers included:

• Infosys and LTIMindtree (LTIM), both up around 5%
• OFSS, Mphasis and Tech Mahindra, each gaining over 4%

Wipro Q3FY26 Earnings in Focus

After Infosys, attention now shifts to Wipro, which is scheduled to report its Q3FY26 earnings on Friday. Ahead of the results, Wipro share price was up over 3% on Friday, indicating a positive tone going into the announcement.

While the numbers will ultimately decide the stock’s direction, the pre-result move suggests that investors are positioning for cues that could support the broader IT basket.

A Quick Look Back: Nifty IT Index Was Under Pressure in 2025

Despite Friday’s surge, it is worth remembering that the IT sector had a difficult previous year. In 2025, the Nifty IT index fell 12.6%, weighed down by multiple concerns, including H1-B visa-related headwinds and challenging economic conditions in the US, which dampened overall investor sentiment towards the sector.

Conclusion

Friday’s move in the Nifty IT index reflects a sharp shift in near-term sentiment, led by Infosys’ results, stronger guidance, and robust deal wins. With every IT heavyweight participating in the rally, and Wipro’s earnings still due, the sector remains firmly in focus in coming days.