TCS and Infosys shares surge up to 9% in three trading days, raising questions about strategic position management
IT Stocks Surge: Infosys and TCS Lead the Rally
On Tuesday, the shares of Infosys and Tata Consultancy Services (TCS) extended their rally, emerging as the top gainers in both the Nifty IT index and the benchmark Nifty50 index. The surge in IT stocks was driven by renewed buying interest in the sector, with Infosys and TCS leading the charge.
Infosys Sees Biggest Single-Day Gain Since May 2025
Infosys ended the day 5.61 percent higher at Rs 1,270 per share on the NSE, marking its biggest single-day gain since May 2025. The stock has gained more than 9 percent over the last three sessions, with gains recorded for three consecutive days. According to Virat Jagad, Senior Technical Research Analyst at Bonanza, Infosys is showing signs of a technical recovery after a steep correction from the Rs 1,700-1,750 zone.
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| IT Stock | Gain (Last 3 Sessions) | Gain (Last Session) |
|---|---|---|
| Infosys | 9.01% | 5.61% |
| TCS | 8.12% | 6.69% |
| Coforge | 4.23% | 4.15% |
| Mphasis | 4.83% | 4.58% |
| HCLTech | 4.95% | 4.82% |
TCS Records Biggest Single-Day Gain Since January 2025
TCS shares closed 6.69 percent higher at Rs 2,451.10 per share on the NSE, recording their biggest single-day gain since January 2025. The stock has gained more than 8 percent over the last two trading sessions. According to Jagad, TCS has witnessed a strong demand-led reversal and has broken above the immediate resistance level of Rs 2,348.75.
Nifty IT Index Emerges as Best-Performing Sectoral Index
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The strong rally in IT stocks helped the Nifty IT index emerge as the best-performing sectoral index during the session. The index ended 4.23 percent higher, its biggest single-day gain so far this year. Over the last three sessions, the index has advanced about 7.5 percent.
Recent Rebound Fails to Offset Year-to-Date Decline
Despite the recent rebound, the Nifty IT index remains down 19 percent so far in 2026, weighed by muted earnings and concerns over artificial intelligence-led disruption. However, a recent CLSA report titled "How Much SaaSpocalypse is Real" has provided some relief to IT shares. The report suggests that recent quarterly results from technology companies indicate that artificial intelligence is not yet having a negative impact on software-as-a-service (SaaS) demand.
Investor Takeaway
Investors should be cautious of potential overvaluation in IT stocks.
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