{
  "id": 14827658,
  "title": "IT stocks power Dalal Street rally as global AI trade loses steam",
  "url": "https://urgent.news/2026/10/15/it-stocks-power-dalal-street-rally-as-global-ai-trade-loses-steam",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-15T23:59:44.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/it-stocks-power-dalal-street-rally-as-global-ai-trade-loses-steam/articleshow/134979518.cms"
  },
  "original_language": "en",
  "account": "Mumbai: Indian equities experienced a significant rebound on Thursday, propelled by a surge in IT stocks amid the unwinding of AI-related investments globally. The BSE Sensex climbed 1,533.72 points, or 2.11%, to reach 74,315.61, while the NSE Nifty50 increased by 374.65 points, or 1.66%, to settle at 22,997.35. This rally unfolded as worries about persistent US inflation and potential further monetary tightening put pressure on global markets, prompting a sell-off in technology stocks across Asia, particularly in South Korea and Taiwan.\n\nIT stocks played a pivotal role in the local market's recovery, as the global correction in AI-linked stocks opened the door to potential capital rotation towards them. Tech Mahindra led the surge, advancing 4.8% after reporting a 33% increase in consolidated net profit for the second quarter. Other notable gainers included HCL Technologies (up 2.5%), Infosys (2%), and Tata Consultancy Services (2%).\n\nThe banking, automotive, and energy sectors also witnessed increased buying interest, contributing to the market's positive sentiment. Harshit Gupta, head of research at Wealthy Nivesh PMS, noted that the reversal of global capital flows from the US and semiconductor hubs like South Korea and Taiwan could benefit Indian equities. He suggested that rising enterprise adoption of AI could create selective opportunities for Indian IT services firms, driven by the growing demand for implementation, integration, and consulting services.\n\nHowever, Manish Bhandari, founder, CEO, and portfolio manager at Vallum Capital, cautioned that the AI stocks' decline in Asian markets might not lead to a broader expansion of Indian earnings, as South Korean and Taiwanese markets were experiencing a downturn. He emphasized that the PE multiple could play a crucial role in the short run, potentially attracting capital back to select Indian stocks. Nevertheless, the rally remained concentrated in large-cap stocks, with the Nifty Midcap index declining 0.3% and the Smallcap index falling 1.1%.\n\nEasing US Treasury yields and a stabilizing rupee provided some relief amid the global macroeconomic uncertainty, helping to offset some of the pressure exerted by the macroeconomic factors.",
  "summary": "The rally came even as concerns over sticky US inflation and the prospect of further monetary tightening weighed on global markets, triggering a sell-off in technology stocks across Asia, particularly in South Korea and Taiwan.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}