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What next for stocks of IT firms
About What next for stocks of IT firms
Information technology (IT) bellwether Infosys Technologies' January-March quarter earnings, announced on Thursday, missed Street estimates. While its net profit for the three-month period declined 11.7 per cent from a year ago to Rs 7,033 crore, the more concerning piece of news lay in its outlook for FY26: The company guided for weaker than expected revenue growth during the ongoing financial year. Even as global economic uncertainty, tariff disruptions and cautious client spending cloud the sector's outlook, Infosys seems to share the pessimism aired earlier by Accenture, which fears loss of US federal contracts, and Tata Consultancy Services (TCS) and Wipro, which too flagged a challenging business scenario. Both Infosys and TCS, though, have affirmed that they intend to continue hiring in thousands from engineering colleges this financial year. While Infosys said it would hire 20,000 fresh engineering graduates this year, TCS committed to sticking to its annual hiring numbers of 42,000. Only Wipro said it would recalibrate its campus hiring programme based on the demand environment. The equity market also seems to echo the grim portents of the IT sector, with India's top IT services exporters continuing to lose ground on the bourses, despite bulls' return to the Street. In April alone, the Nifty IT index has fallen as much as 9.5 per cent, even as the broader Nifty 50 has gained 1.4 per cent. The IT sector's weighting in the Nifty 50, at 10.2 per cent, stands at the lowest in 17 years and only a shade better than the all-time low of 9.7 per cent before the breakout of the 2008 global financial crisis. Meanwhile, TCS appears to be facing more difficulty, with the US Equal Employment Opportunity Commission investigating allegations of discrimination levelled against it by dozens of American workers. What might these developments mean for the stocks and books of India's IT giants? Read on to arm yourself with insights and inform your investment decisions.
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IT companies' slice of Nifty 50 pie shrinks sharply to 17-year low
Sector's weighting in index has slipped to 10.2% from peak of 17.7%
Updated On: Apr 18 2025 | 12:01 PM IST
Infosys Q4FY25 results: Net profit declines 11.7% to ₹7,033 crore
Infosys signals weak FY26 after muted Q4 result
Updated On: Apr 18 2025 | 12:02 PM ISTUS agency probes bias claims against TCS on race, age, national origin
An EEOC spokesperson, citing federal law, said the agency cannot comment on investigations. Complaints, or charges, made to the EEOC are confidential under federal law.
Updated On: Apr 18 2025 | 12:03 PM ISTIT major Infosys to hire 20,000 fresh engineering graduates in FY26
It remains to be seen how this hiring will pan out, which will largely depend on project ramp-ups and more deal inflows. Any further deterioration may force the companies to proceed with caution
Updated On: Apr 18 2025 | 12:01 PM IST