Infosys, TCS, HCLTech Rise as AI Deals Boost IT Sector Outlook

Shares of Infosys, Tata Consultancy Services, and HCLTech moved higher in early trade on Thursday, reflecting renewed optimism in India’s technology sector following major announcements at the India AI Impact Summit 2026.

In morning trading, HCLTech gained around 1.5%, while Infosys and TCS rose over 1%. Tech Mahindra also advanced close to 1%, indicating a broad-based recovery across frontline IT stocks.

Recovery after weeks of pressure

The rebound comes after a challenging period for IT shares. Over recent weeks, technology stocks faced sustained selling pressure amid concerns that rapid advancements in artificial intelligence could disrupt traditional outsourcing and software services models.

Investors feared AI-driven automation might reduce demand for legacy services such as application maintenance, support operations, and routine coding work — segments that have historically contributed significantly to revenue for Indian IT companies.

AI seen as opportunity, not disruption

Market sentiment shifted after developments at the summit suggested Indian IT firms are positioning themselves within the evolving AI ecosystem rather than being displaced by it.

TCS signing up OpenAI as a client for its data centre initiative reinforced its growing role in AI infrastructure and backend support. Meanwhile, Infosys strengthened partnerships focused on enterprise AI adoption and digital transformation.

These developments indicate that global AI firms may increasingly rely on Indian technology companies for system integration, deployment, managed services, and large-scale implementation — areas where Indian IT majors have deep expertise.

Investment momentum strengthens outlook

Large investment commitments in AI infrastructure and venture funding announced during the summit further strengthened investor confidence. The announcements signaled that India is likely to remain central to global AI expansion, creating long-term demand for IT services and technology solutions.

Another factor supporting the rally is valuation comfort. Following the recent sell-off, several IT stocks were trading near long-term average valuations, encouraging investors to re-enter the sector.

Shift in perception driving market movement

Thursday’s gains reflect a broader shift in how investors view artificial intelligence. Instead of seeing AI purely as a disruptive force, markets are increasingly recognising it as a potential growth driver for Indian IT firms.

However, analysts caution that sustained momentum will depend on converting summit announcements into actual deal pipelines, revenue growth, and measurable enterprise adoption.

If companies successfully capitalise on AI-driven demand, the sector could enter a new growth phase driven by next-generation digital services.