Infosys, TCS rally, Nifty IT gains 2%; HSBC lists 5 reasons why software, not AI, may lead in 2026

The tech sector stocks have seen a sharp rebound in trade today. The Nifty IT Index is up over 2%, and the top 5 gainers on the Nifty are tech sector stocks. Infosys, TCS, Tech Mahindra and HCLTech are all up over 2% apiece.

In fact, the tech stocks have been battered significantly in February on concerns about AI-led disruption and the recent Jefferies downgrade on key stocks. Many market observers now believe that the sector might see some near-term rebound.

Meanwhile, the bigger concerns about AI continue to linger. In a recent report, HSBC Securities (USA) says that while artificial intelligence may be driving the current technology rally, the bigger and longer-term winner could be enterprise software companies.