# IT Stocks Rally 15% as Jefferies Boosts Targets

> Indian IT stocks surge 15% today with Jefferies raising targets for Infosys and TCS.
- Title: IT Stocks Rally 15% as Jefferies Boosts Targets · mint
- Summary: Indian IT stocks surge 15% today with Jefferies raising targets for Infosys and TCS. Indian IT stocks rose 15% today as Jefferies raised price targets for…
- Keywords: it stocks, tcs, l&t technology, wipro, infosys, jefferies, nifty it index, q2 earnings, ai risks, re-rating potential, news, india
- Source: mint — https://livemint.com/market/stock-market-news/it-stocks-on-fire-rally-up-to-15-today-check-performance-of-tcs-l-t-technology-wipro-infosys-jefferies-bulli-11792559488325.html
- Author: Pranati Deva
- Published: 2026-10-21T05:36:15+00:00
- Read time: 1 min
- Topics: it stocks, tcs, l&t technology, wipro, infosys, jefferies, nifty it index, q2 earnings, ai risks, re-rating potential, news, india
## IT Stocks Rally Today
Indian IT stocks rose 15% today with L&T Technology Services leading the rally after strong Q2 results.

> IT stocks witnessed strong buying on wednesday, october 21, with l&t technology services leading the rally after reporting robust second-quarter results
## Nifty IT Index Climbs
The Nifty IT index rose 2.6% to 32,348.25, outperforming the Nifty 50 which gained 1%.
## Top Performers
L&T Technology surged 15%, Wipro advanced 4%, and Infosys, TCS, Tech Mahindra gained 2-3.5%.
## Q2 Earnings Strength
L&T Technology reported higher revenue and profitability with Q2FY27 revenue up 3.4% QoQ and 12.1% YoY.

> The company's q2fy27 revenue increased 3.4% quarter-on-quarter (qoq) and 12.1% year-on-year (yoy) to ₹ 3,040.4 crore
## Jefferies Bullish Outlook
Jefferies sees re-rating potential for Infosys and TCS but warns AI-related risks could delay recovery.

> With it firms still delivering growth despite weak macro and ai-deflation, investors are more willing to revisit their terminal growth assumptions
## Target Price Adjustments
Jefferies raised Infosys target to ₹1,160 from ₹1,020 and TCS target to ₹2,125 from ₹1,800.

> For infy, jefferies retained its 'hold' rating but increased its target price to ₹ 1,160 from ₹ 1,020
## Re-rating Potential
Jefferies estimates 20% re-rating potential for Infosys and TCS under optimistic scenarios.

> Under the optimistic scenario, jefferies sees more than twenty percent re-rating potential for infy and t. c s among large-cap it companies
## Growth Expectations
IT stocks price in 0-9% revenue growth for large-caps versus 6-14% for mid-caps, below historical levels.

> Large-cap it companies are pricing in constant-currency revenue growth of 0-9% on a compound annual growth rate (cagr) basis
## Risks to Recovery
Elevated crude oil prices, high US bond yields and AI-driven client spending uncertainty threaten IT stocks.

> Elevated crude oil prices, high us bond yields and continued foreign investor outflows remain concerns for the broader market
## Jefferies Caution
Jefferies warns IT sector recovery depends on individual companies sustaining growth, not broad-based recovery.

> Any re-rating, therefore, is likely to depend on individual companies' ability to sustain revenue growth, deliver earnings and justify higher valuation multiples
## Key takeaway

Indian IT stocks rose 15% today as Jefferies raised price targets for Infosys and TCS amid strong Q2 earnings and renewed tech spending hopes.