Positive impactSector
Dharmesh Kant sees another 5-10% upside in IT stocks; prefers TCS, HCLTech and Tech Mahindra
CNBC-TV18 1 hr ago·19 Oct 2026, 4:15 am
Dharmesh Kant, Head of Research at Chola Securities, has identified a potential 5-10% upside for select Indian IT stocks. He believes the sector's recent rally is supported by strong artificial intelligence (AI) deal wins, which are helping to offset concerns over slowing traditional technology spending. While he sees room for further gains, Kant describes this as a tactical opportunity rather than a long-term structural shift.
For investors, this suggests that the IT sector could continue to perform well in the near term, particularly for companies with a strong presence in AI. However, because this is viewed as a tactical trade, it may not be suitable for all investors. The sector's performance will likely depend on the pace of new AI contracts and the broader economic environment.
What to watch next is the volume of new AI-related deals and the overall health of global technology spending. Investors should also monitor how major IT companies report their quarterly results, as these will provide further clues on the sustainability of the current rally.
Affected stocks
Bullish2 stocks
Bull / bear label is derived from the article's AI sentiment — indicative, not advice. Prices may be delayed.
Key takeaways
- Concerns Tech Mahindra (TECHM).
- Category: Sector.
- AI reads the tone as positive (potentially bullish) for the stock.
- Assessed as a significant, market-relevant update.
- Also mentions TCS.
Why it matters
A meaningful update for Tech Mahindra worth tracking. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
