Indian IT stocks staged a sharp rally on Friday, 6 November, defying a brutal global selloff in artificial intelligence shares. The Nifty IT index climbed more than 2.35 per cent in early trade, with Mphasis leading the charge as it surged as much as 8 per cent to Rs 2,712.
While Wall Street and Asian markets bled, Indian technology stocks went the other way. Nine of the ten constituents of the Nifty IT index were trading in the green, and the index touched a high of 33,616.20, up 2.37 per cent from its previous close of 32,837.85.
It was a striking reversal for a sector that had been among the worst performers on Dalal Street until September. The Nifty IT index has now gained more than 18 per cent over the past month.
Mphasis leads the pack
Mphasis was the standout performer of the morning, jumping over 8 per cent to emerge as the top gainer on the Nifty IT index. The gains were broad-based. HCL Technologies climbed more than 2.5 per cent to Rs 1,468, while Persistent Systems advanced over 2 per cent. Infosys and Tata Consultancy Services (TCS) gained up to 3 per cent each, Coforge and Wipro rose more than 1 per cent, and Tech Mahindra and LTIMindtree also traded higher. Oracle Financial Services Software was the exception, falling nearly 2 per cent.
Why Indian IT is bucking the global trend
The rally came as investors reassessed the global AI trade. Shares of AI-linked companies and chipmakers crashed on Wall Street on Thursday, wiping out more than $2 trillion in market value. The S&P 500 fell 4.4 per cent in its worst day since April 2025, the Nasdaq Composite plunged 5.5 per cent, and the Dow Jones Industrial Average dropped 3.4 per cent, shedding more than 1,800 points.
The pain spread to Asia on Friday. Japan’s Nikkei fell more than 5 per cent and South Korea’s Kospi dropped around 7.4 per cent. Nvidia fell 9.26 per cent, AMD plummeted 17.26 per cent and Micron Technology tanked 17.46 per cent.
Indian IT companies look different to investors. Their businesses are largely centred on technology services rather than AI hardware and data-centre infrastructure, the very areas now under a cloud. As doubts grow over whether the enormous sums being committed to AI will generate returns quickly enough, money appears to be rotating towards services-led names. Foreign buying added to the mood, with provisional data showing foreign portfolio investors bought Indian equities worth Rs 13,801.83 crore on Thursday.
The global AI selloff in numbers
- S&P 500: down 4.4 per cent on Thursday, its worst day since April 2025
- Nasdaq Composite: down 5.5 per cent on Thursday
- Nvidia: down 9.26 per cent; AMD down 17.26 per cent; Micron down 17.46 per cent
- Nikkei 225: down more than 5 per cent on Friday; Kospi down around 7.4 per cent
- Nifty IT: up more than 2.35 per cent in early trade on Friday, nine of ten stocks in the green
- Mphasis: up as much as 8 per cent to Rs 2,712, the top Nifty IT gainer
The trigger for the global rout was a mix of worries: the sustainability of AI infrastructure spending, the prospect of tighter regulation of AI data centres after the Democratic Party’s victories in the US midterm elections, and weak results from chipmaker Qualcomm.
What analysts are saying
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the global tech rout could work in India’s favour. “This tech rout, particularly the sharp deceleration in AI trade will turn out to be beneficial for India,” he said, adding that India is likely to be the least impacted among major markets. The broader Indian market held its nerve, with the Sensex opening flat on Friday at 79,413.66 and the Nifty 50 almost unchanged at 24,538.20, a day after both surged over 2 per cent on Thursday to extend a six-session winning streak.
Still, analysts struck a cautious note. The India VIX, a gauge of market volatility, climbed over 4 per cent on Friday. Whether the rally holds, and whether foreign buying continues at Thursday’s pace, will decide if this is the start of a longer re-rating or just a one-day rotation. For Friday, though, the message from Dalal Street was clear. While the world sold AI, India bought IT.
FAQs
Why did Indian IT stocks rise on 6 November 2026?
The Nifty IT index rose more than 2.35 per cent as investors rotated money into Indian technology services stocks amid a global selloff in AI-linked shares, with foreign buying of Rs 13,801.83 crore on Thursday adding support.
Which IT stock gained the most on Friday?
Mphasis was the top gainer, surging as much as 8 per cent to Rs 2,712 in early trade.
Why are global AI stocks falling?
Investors question whether huge AI infrastructure spending will pay off quickly enough, alongside worries over AI regulation after the US midterm results and weak results from chipmaker Qualcomm. Wall Street lost more than $2 trillion in value on Thursday.
How have Indian IT stocks performed over the past month?
The Nifty IT index has gained more than 18 per cent over the past month, a sharp comeback after being among the worst-performing sectoral indices until September 2026.
Disclaimer: This article is for information only and should not be construed as investment advice. Consult a qualified financial advisor before making any investment decision.
