IT Stocks Surge on Strong Earnings, Rupee Gains After RBI Intervention

Indian equity markets witnessed a strong rally in IT stocks today, with the Nifty IT index climbing over 4% following robust Q2FY27 results from HCLTech and continued positive sentiment from TCS's earlier earnings. Simultaneously, the Indian Rupee appreciated significantly by 82 paise against the US Dollar, reaching 94.96, buoyed by the Reserve Bank of India's recent measures to curb speculative trading and manage dollar demand. The broader market, represented by the Sensex and Nifty, also traded higher, reflecting a cautiously optimistic sentiment despite persistent global crude oil price volatility.

Key highlights

• Nifty IT Index: Surged over 4%, leading sectoral gains, driven by strong performances from major IT players.
• HCLTech Q2FY27 Results: Consolidated profit after tax rose 21.18% year-on-year to ₹5,132 crore, with revenue up 11.5% to ₹35,620 crore, exceeding expectations.
• Indian Rupee: Appreciated by 82 paise to 94.96 against the US Dollar in early trade, marking its biggest single-day gain in six months.
• RBI Intervention: The Rupee's strength is attributed to the RBI's weekend measures, including tighter forex derivatives rules and a dedicated dollar window for oil marketing companies.
• IMF India Growth Forecast: The International Monetary Fund (IMF) raised India's growth forecast for 2026 to 7% from 6.4%, citing strong momentum and resilient domestic demand.

IT Sector Leads Market Rally on Strong Q2 Earnings

The Indian IT sector emerged as a significant gainer in today's trading session, with the Nifty IT index climbing over 4% and contributing substantially to the broader market's positive momentum. This surge was primarily fueled by the strong second-quarter fiscal year 2027 (Q2FY27) earnings reported by major IT services companies, notably HCLTech, and continued positive sentiment from Tata Consultancy Services (TCS) results announced last week.

HCLTech reported a robust performance for Q2FY27, with its consolidated profit after tax increasing by 21.18% year-on-year to ₹5,132 crore. The company's revenue from operations also saw a healthy rise of 11.5% to ₹35,620 crore compared to the same period last year. This strong showing was attributed to higher margins from its fast-growing advanced artificial intelligence (AI) operations and a lower tax outgo. Following the announcement, HCLTech shares were among the top gainers, rising over 5% in intraday trade.

Analysts noted that HCLTech's results, while broadly in-line, highlighted resilience in its services business, strong margins, and momentum in AI-led services. The positive sentiment extended to other IT majors, with TCS also seeing gains after its Q2FY27 results, announced last week, were largely in line with or slightly ahead of market expectations. Infosys and Tech Mahindra also traded higher, reinforcing the sector's upward trajectory. The rally underscores investor confidence in the IT sector's ability to secure new deals and maintain profitability amidst evolving global demand for digital transformation and AI-driven solutions.

Rupee Stages Strong Comeback as RBI Tightens Forex Rules

The Indian Rupee demonstrated a significant appreciation against the US Dollar today, gaining 82 paise to trade at 94.96 in early sessions. This marked the Rupee's steepest single-day gain in over six months and signals a positive market reaction to a series of measures implemented by the Reserve Bank of India (RBI) over the weekend.

The RBI's interventions were primarily aimed at curbing speculative trading against the Rupee and easing immediate dollar demand in the market. Key measures included tightening rules governing foreign exchange (forex) derivatives trades, limiting overseas clients to using them only for hedging purposes. Additionally, the central bank asked banks to create a 20% reserve for dollar purchases exceeding $2 million and introduced a dedicated dollar window for oil marketing companies (OMCs) through designated banks.

Forex traders indicated that these steps are expected to reduce dollar demand in the spot market and discourage speculative positions against the Rupee, which had been under considerable pressure, nearing ₹97 per dollar recently. While global market trends and sustained dollar demand will influence the Rupee's future trajectory, the RBI's decisive actions have provided immediate relief and restored a degree of market confidence in the currency's stability. Analysts anticipate the USD/INR pair could ease further towards the 94.80-95.00 range in the near term, although hedging costs for importers might rise.

More stocks and market news

Crude Oil Prices Remain Elevated Amid Geopolitical Tensions

Global crude oil prices continued to be a key focus for markets today. Brent crude futures were trading around $105-$106 per barrel, showing a slight decline after a previous rally. This dip was partly attributed to the prospects of additional Russian diesel supplies entering the market, which offered some relief to supply concerns. However, geopolitical tensions, particularly in the Middle East, continue to keep oil markets volatile and prices elevated. High crude prices remain a significant concern for India, given its heavy reliance on oil imports, impacting inflation and the current account deficit.

IMF Raises India's 2026 Growth Forecast to 7%

In a positive development for the Indian economy, the International Monetary Fund (IMF) has raised its growth forecast for India in 2026 to 7%, up from its previous projection of 6.4% in July. The upward revision was driven by stronger-than-expected economic momentum, resilient domestic demand, and robust services activity. The IMF's latest World Economic Outlook highlighted India's strong growth potential and favorable demographic dynamics, setting it apart from several other energy-importing emerging economies. However, the IMF also noted that higher oil prices remain a vulnerability for India.

Multiple IPOs Open for Subscription Today

The primary market witnessed a busy day with several Initial Public Offerings (IPOs) opening for subscription. HD Fire Protect Ltd, a manufacturer of fire protection equipment, launched its ₹712.31 crore IPO with a price band of ₹258-₹271 per share. Additionally, Vaibhav Vyapaar Limited (LoanFront), an RBI-registered NBFC, opened its IPO aiming to raise ₹42.10 crore, with shares to be listed on the NSE Emerge platform. Ravita Engineering Services Limited also launched its IPO today, targeting ₹116.05 crore. These offerings reflect continued investor interest and activity in India's primary markets.

Market context

The Indian benchmark indices, Sensex and Nifty, traded with gains today. The Sensex rose over 600 points, while the Nifty 50 climbed above the 22,550 mark by afternoon trade. This positive movement was largely supported by the strong performance of IT and financial services stocks. The Rupee's appreciation also contributed to the overall positive sentiment. However, broader market sentiment remains sensitive to global cues, including crude oil price movements and foreign institutional investor (FII) flows, which had seen outflows in previous sessions.

Why these stories matter

The strong performance of the IT sector, driven by solid Q2 earnings, signals resilience and growth potential in India's technology services, which is crucial for overall economic expansion and export revenues. The Rupee's appreciation, backed by RBI's proactive measures, is vital for managing imported inflation, particularly from elevated crude oil prices, and for maintaining macroeconomic stability. The IMF's upgraded growth forecast provides a positive long-term outlook, potentially attracting further foreign investment. Meanwhile, the active IPO market indicates healthy capital formation and investor appetite for new listings, reflecting confidence in India's economic trajectory despite global uncertainties.

What to watch next

• Upcoming Q2FY27 Earnings: Investors will closely monitor results from other major companies, especially in the banking and auto sectors, for further insights into corporate performance.
• Global Crude Oil Trends: Developments in geopolitical situations and global supply dynamics will continue to influence crude oil prices and, consequently, India's inflation outlook.
• FII/DII Activity: Institutional investor flows will be crucial in determining market direction and sentiment in the coming sessions.
• RBI's Liquidity Management: The impact of RBI's open market operations (OMO) and other liquidity measures on bond yields and overall financial system liquidity will be keenly watched.
• IPO Subscription Updates: Performance of ongoing IPOs and announcements of new public offerings will indicate the health of the primary market.

Sources

• Business Today: RBI schedules ₹25,000 crore bond sale for October 13; yields may open higher on Monday
• The Hindu: Rupee jumps 82 paise to 94.96 against U.S. dollar in early trade
• Financial Express: Share Market Today LIVE, 13th October 2026: Sensex jumps over 600 points, Nifty above 22,500; Nifty IT up 3.4%
• Upstox: HCLTech Q2 FY27 Results: What Analysts Are Saying
• Economic Times: IMF raises India's growth forecast for 2026 to 7%

FAQ

1. Why are IT stocks rallying today?

IT stocks are rallying today primarily due to strong Q2FY27 earnings reported by major companies like HCLTech, which saw a 21.18% increase in consolidated profit after tax. Positive sentiment from TCS's earlier results and momentum in AI-led services are also contributing factors.

2. What caused the Indian Rupee to appreciate significantly today?

The Indian Rupee appreciated by 82 paise against the US Dollar today due to recent measures by the Reserve Bank of India (RBI). These include tighter rules for forex derivatives to curb speculation and a dedicated dollar window for oil marketing companies to ease dollar demand.

3. What is the current outlook for crude oil prices and its impact on India?

Crude oil prices remain elevated, with Brent crude around $105-$106 per barrel, despite a slight dip today due to potential Russian diesel supplies. Geopolitical tensions continue to fuel volatility. For India, high crude prices are a concern as they can exacerbate inflation and widen the current account deficit due to heavy import reliance.

4. Has the IMF revised India's economic growth forecast?

Yes, the International Monetary Fund (IMF) has raised India's economic growth forecast for 2026 to 7% from its previous projection of 6.4%. This revision is based on strong economic momentum, resilient domestic demand, and robust services sector activity.

5. Which new IPOs opened for subscription today, October 13, 2026?

Several IPOs opened for subscription today. These include HD Fire Protect Ltd, which aims to raise ₹712.31 crore, Vaibhav Vyapaar Limited (LoanFront) with a target of ₹42.10 crore, and Ravita Engineering Services Limited, seeking ₹116.05 crore.

Disclaimer: This article is for educational purposes only. It does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.