Indian IT Sector Sees Broad Gains
Indian information technology stocks experienced a significant upturn in early trade on Friday, May 15, 2026, with the Nifty IT index climbing nearly 2 percent. Leading firms such as Infosys Ltd, Tata Consultancy Services Ltd (TCS), HCLTechnologies Ltd, Tech Mahindra Ltd, and Wipro Ltd all registered gains. Other prominent IT counters, including Coforge Ltd, Persistent Systems Ltd, Oracle Financial Services Software Ltd (OFSS), LTIMindtree Ltd, and Mphasis Ltd, also traded higher during the session.
Value Buying and AI Prospects Drive Rally
Kranthi Bathini, Equity Strategist at WealthMills Securities, noted that the rebound in the IT index was largely a result of value buying following a period of sharp correction in the sector. He advised investors to adopt a 'buy-on-dips' strategy as the IT shares recover.
Nuvama Institutional Equities echoed this positive sentiment, projecting a recovery for Indian IT stocks. While acknowledging potential short-term volatility, the brokerage remains optimistic about the medium- to long-term outlook, primarily driven by the increasing adoption of generative artificial intelligence (Gen AI).
Analysts Remain Bullish on Long-Term Growth
According to Nuvama, Indian IT services companies delivered largely in-line quarterly results, demonstrating stable revenue growth and margins. Deal wins remained robust, fueled by AI-led demand and ongoing digital transformation initiatives, despite extended conversion timelines amid broader macroeconomic uncertainties.
Nuvama analysts believe that IT stocks are increasingly responsive to global AI developments rather than solely their fundamental performance. They view current market skepticism as a recurring pattern seen in previous tech cycles, anticipating a strong rebound for Indian IT firms as Gen AI proliferation accelerates. Although Gen AI-led productivity gains might lead to near-term revenue cannibalization for IT services companies, the sector is expected to reach an inflection point, potentially expanding the total addressable market (TAM) to an estimated $300–400 billion by 2030.
Key Analyst Recommendations and Target Prices
From a medium to long-term perspective, Nuvama maintains a positive stance on the sector, while cautioning that near-term volatility is likely to persist. The brokerage has issued 'Buy' ratings for several largecap IT companies, setting 12-month target prices as follows:
- TCS: Rs 3,650
- Infosys: Rs 1,650
- Wipro: Rs 255
- Tech Mahindra: Rs 1,750
Additionally, Nuvama reiterated 'Buy' calls for mid-cap IT players, assigning target prices of Rs 6,200 for LTIMindtree, Rs 2,200 for Coforge, Rs 6,100 for Persistent Systems, and Rs 3,200 for Mphasis.