Major information technology stocks opened higher in early trade on Thursday as investors reacted to fresh deal announcements and investment commitments emerging from the ongoing India AI Impact Summit 2026.
HCLTech rose about 1.5% at 9:28 am, while Infosys and TCS gained over 1%. Tech Mahindra was also up around 1%, signalling a broad recovery across frontline technology names.
The rebound follows a difficult few weeks for the sector. IT stocks had been under sustained pressure amid fears that rapid advances in artificial intelligence could disrupt traditional outsourcing and software services models.
Investors were concerned that AI-driven automation might reduce demand for legacy coding, application maintenance and support services, areas that have historically powered revenues for Indian IT majors.
So what changed? Announcements at the summit suggested that Indian IT firms are not being edged out by AI but are positioning themselves within the AI value chain.
TCS signing up OpenAI as a customer for its data centre initiative reinforced its role in AI infrastructure support. Infosys has also strengthened AI partnerships aimed at enterprise adoption.
These moves indicate that global AI companies may increasingly depend on Indian IT firms for integration, deployment and managed services.
Large investment commitments in AI infrastructure and venture funding further boosted confidence that India will remain central to global AI expansion.
Another factor behind the rally is valuation comfort. After the recent sell-off, several IT stocks were trading closer to long-term averages, prompting investors to step in.
While it is too early to call a sustained reversal, Thursday’s move reflects a shift in perception. AI is not being seen only as a threat to India’s traditional IT services model.
It is gradually being recognised as a potential growth engine, provided companies successfully convert summit announcements into real revenue and deal pipelines.
