IT stocks surged during the trading session on October 8 amid a weak overall market, with the Nifty IT index rallying 2.23% to hit a day's high of 28,378.90 points, compared to 27,757.80 points at the previous close. After touching the intraday peak, the index retracted some of its gains, trading around 1.1% higher at 28,072 points during the session. Stocks including Mphasis, Coforge, Tech Mahindra, TCS, and LTM led the pack of gainers on Thursday.

The broader benchmark equity indices, however, suffered losses due to elevated global bond yields, rebounding crude oil prices, and selling pressure from Asian markets. The NIFTY50 was down 1.1% at 22,357 points, while the BSE SENSEX was down 0.93% at 71,963 points as of the noon deals.

Equity investors were reacting based on momentum ahead of TCS's upcoming Q2 earnings report and second interim dividend issue, scheduled to be published around the market closing bell. TCS's earnings will kick off the Q2 earnings season and provide guidance on the financial health of the sector, setting the stage for upcoming announcements. Market experts predict that constant currency revenue figures and the company's order book quality will remain in focus, amid expectations of lower single-digit sequential growth and double-digit year-on-year growth in the period.

The overall outlook for the Indian IT sector remains muted due to headwinds, despite global IT consulting major Accenture's positive growth forecast on healthy demand and stronger execution. Sentiment in the market remains cautiously positive for IT stocks ahead of TCS's earnings, as deal conversions and revenue growth potential have prompted momentum in the sector. "The quarter that changes my structural caution is one where tier-one constant-currency growth re-accelerates above 2% sequentially with the order book rising and margins intact, which would mean AI revenue has turned net new. Until a print says that, rallies in the sector are rented, and the results season starting October 8 is the next test of whether the lease has been extended," said Harshal Dasani, Business Head of INVasset PMS.

Among individual stocks, Mphasis hit an intraday high of ₹2,357.30 with a 3% gain, while TCS also rose 3% to an intraday high of ₹2,141.50. Coforge gained 2.6% to ₹1,870.60, Tech Mahindra rose 2.2% to ₹1,525, and HCL Tech climbed 2.2% to ₹1,211.80. Persistent Systems and OFSS both gained 2.2%, reaching ₹5,629 and ₹10,812 respectively. Infosys rose 2% to ₹1,012.65, LTM gained 1.8% to ₹3,983, and Wipro edged up 1.6% to ₹162.21. Data is sourced from the NSE website as of October 8, 2026.

The overall weakness in the Indian rupee also added to the sentiment for IT stocks on Thursday, as these companies enjoy a direct margin benefit from a higher US dollar value, with the majority of their clients based in America. Investing.com data showed the Indian currency trading 0.26% weaker at 97.01 against the US dollar on October 8, compared to 96.76 per dollar at the previous currency market close. This came one day after the rupee weakened to over a four-month low due to the RBI's rate-hike policy strategy, which removed rate-cut potential in the near future.

In related market moves, Paytm shares pared losses after a 10% plunge, still down 5%, while ITC shares tumbled 4% after reports of a ₹9,400 crore block deal. HDFC Bank shares declined after foreign investors cut a 2.43% stake in the September quarter, with shares down 29% year-to-date.