Indian IT stocks witnessed a strong rally on Friday as investors rushed to buy shares of major technology companies. Stocks of leading firms such as Infosys, TCS, HCL Tech and Tech Mahindra gained up to 3%, lifting overall sentiment in the IT sector.

The major trigger behind the surge was Tech Mahindra's better-than-expected first-quarter results for the financial year 2026-27. The company's strong performance and positive views from brokerage firms boosted confidence among investors and created momentum across IT stocks.

Major IT Stocks Gain Strongly

During the trading session, Infosys shares climbed nearly 3.3% to ₹1,117, while HCL Tech gained around 3%. Tech Mahindra shares rose about 3.4%, and TCS advanced nearly 2.5%. Shares of Persistent Systems also moved higher by more than 1%.

However, Wipro shares declined over 3% after the company reported weaker-than-expected quarterly performance.

The positive movement in large-cap IT stocks pushed the Nifty IT index up by around 2.3% to 29,381.

Brokerages Turn Positive on Tech Mahindra

Global brokerage firm Nomura said Tech Mahindra delivered stronger-than-expected results in the first quarter. The company's dollar revenue growth on a constant currency basis exceeded expectations, while operating margins also showed improvement.

According to analysts, initiatives such as Project Fortius and the impact of a weaker rupee supported margin expansion.

Nomura increased its target price for Tech Mahindra from ₹1,400 to ₹1,600. Meanwhile, Nuvama maintained its 'Buy' rating and raised the target price to ₹1,800, citing improved margins, strong deal wins and better growth prospects.

Brokerage firm Motilal Oswal also believes that if Tech Mahindra maintains its current pace, the company could outperform several other large IT firms in the coming years.

HCL Tech's Big Deal Adds Investor Confidence

Another factor supporting IT stocks was HCL Tech's announcement of a major international contract. The company extended its seven-year partnership with Guardian Life Insurance Company of America, under which HCL Tech will help modernize the insurer's technology infrastructure and business operations using artificial intelligence solutions.

Investors believe such large technology transformation deals could strengthen HCL Tech's future revenue growth and profitability.

Wipro Results Disappoint Market

While Tech Mahindra's performance boosted the sector, Wipro's quarterly results raised concerns among investors. The company's revenue performance and second-quarter outlook were weaker than market expectations.

Following the results, brokerages including Nomura and Nuvama reduced Wipro's target price. However, both firms continued to maintain a 'Buy' recommendation on the stock.

Challenges Still Remain for IT Companies

Despite the recent rally, experts believe the Indian IT sector continues to face several challenges. Slow global technology spending, reduced client budgets, rising employee costs and the rapid adoption of artificial intelligence are putting pressure on traditional IT outsourcing models.