India's information technology stocks had their best week in 18 years, with the Nifty IT index rising 11.72%, Mint and Business Standard reported. CNBC TV18 put the weekly gain at nearly 12%. Business Standard reported that the index rose 3.92% on Friday to close at 31,924.10, its steepest weekly rise since April 2008. CNBC TV18 reported the close was the index's highest level in eight months.

Two forces drove the rally, the outlets reported. A sell-off in global AI-linked stocks pushed investors toward markets that had missed the AI boom, mainly India's software services firms, Business Standard reported. Mint pointed to "a weakening global AI trade" and stronger-than-expected September-quarter results. CNBC TV18 cited a pullback in AI stocks worldwide and better-than-expected earnings from India's software giants.

The 10 stocks in the index gained ₹2.75 trillion in market value over the week, Business Standard reported. Mint put the figure at nearly ₹3 lakh crore, and CNBC TV18 reported nearly $30 billion, with Tata Consultancy Services alone accounting for $13.3 billion of the increase.

Tech Mahindra jumped about 8.5% on Friday, its biggest one-day gain since March 2020, and at least four brokerages upgraded the stock, CNBC TV18 reported. Business Standard reported that TCS said AI now makes up more than 10% of its revenue. HCL Technologies raised the lower end of its full-year revenue growth forecast, CNBC TV18 reported.

The rebound follows a rough year for the sector, which had been hit by fears that AI would disrupt traditional software services, the outlets reported. Mint reported that the index is still down 15.7% for the year after falling as much as 32%. The wider Nifty 50 rose 2.78% for the week, Business Standard reported.

What we know: India's Nifty IT index gained 11.72% this week, its best week since 2008, on strong results and a global AI sell-off.
What we don't: Whether the rally will last as more companies, including Infosys, report results.