{
  "id": 14946287,
  "title": "IT lifts Nifty to second weekly gain as global AI rotation fuels tech rally",
  "url": "https://urgent.news/2026/10/16/it-lifts-nifty-to-second-weekly-gain-as-global-ai-rotation-fuels-tech",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-16T11:34:24.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/it-lifts-nifty-to-second-weekly-gain-as-global-ai-rotation-fuels-tech-rally/article71592201.ece"
  },
  "original_language": "en",
  "account": "The Nifty IT index saw a significant surge of nearly 4 per cent on Friday, marking the best weekly performance for Indian IT firms in recent memory. Tech Mahindra, TCS, and Infosys delivered strong quarterly results, bolstering investor confidence in the sector. The Nifty 50 closed at 23,146.15, up 0.65 per cent for the day, while the Sensex ended the session at 74,729.27, gaining 413.66 points. Over the week, the Nifty rose by 2.8 per cent, and the Sensex increased by 2,250 points.\n\nSarvam Goel, Founder of Pocketful, noted that IT earnings are rebuilding confidence, and global tech sentiment has become steadier. However, liquidity may face challenges due to the upcoming Jio IPO, along with factors like crude oil prices, Foreign Institutional Investor (FII) flows, and bond yields. Goel cautioned that one strong week does not necessarily indicate a sustained trend.\n\nTech Mahindra led the rally, climbing around 7 per cent after reporting a 32.74 per cent year-on-year increase in net profit for Q2FY27. The company also announced a 1:1 bonus issue and an interim dividend of ₹15 per share. TCS and Infosys followed with gains of 3.26 per cent and nearly 4 per cent, respectively. HCLTech's improved growth guidance further fueled sectoral momentum.\n\nFederal Bank also contributed to the rise, gaining 2.9 per cent after its Q2 net profit surged 45.1 per cent year-on-year to a record ₹1,386 crore. However, the market was not uniformly positive, with FMCG stocks falling 0.4 per cent, while real estate and pharma sectors ended lower. The Nifty Midcap 100 slipped 0.11 per cent, and the Nifty Smallcap 100 decreased by 0.01 per cent.\n\nMarket breadth remained relatively modest, with advances outpacing declines at a ratio of 1.44:1. The rupee strengthened to approximately ₹94.79 against the dollar, partly due to Reserve Bank of India (RBI) intervention. Brent crude oil remained elevated near $105.70 a barrel, exerting pressure on India's import costs. Meanwhile, the US 10-year Treasury yield hovered near 5.09 per cent, continuing to pose a headwind to emerging-market investments.\n\nGold imports declined sharply by 81.27 per cent year-on-year to $1.8 billion in September after a duty hike. Vinod Nair, Head of Research at Geojit Investments Limited, emphasized that sustaining the recovery will depend on broader earnings growth beyond IT, supported by improved domestic demand and reduced margin pressures. The coming week will see significant event risk, as HDFC Bank, ICICI Bank, and Axis Bank are set to report quarterly results on Saturday, which are expected to shape financial sector sentiment. Jio Platforms' ₹30,213 crore IPO, a 100 per cent fresh issue, opened for subscription on October 21 and could become the largest IPO in Indian market history if fully subscribed.",
  "summary": "Nifty 50 closes at 23,146.15, up 148.80 points or 0.65% for the session, while Sensex ends at 74,729.27, adding 413.66 points",
  "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."
}