Nifty IT

Better-than-expected Q2 earnings and attractive valuations boost IT stocks, even as AI headwinds and US labour curbs remain concerns

Sensex Today | Stock Market Highlights, Thursday: In the broader markets, the Nifty MidCap and the Nifty SmallCap fell 1.01 per cent and 0.97 per cent, respectively

The Nifty IT index advanced 2.1 per cent during intra-day deals, with nine out of ten constituent stocks of the index trading in the green.

Tech analyst at Mirae Asset Sharekhan and SAMCO Securities flag 22,000-22,500 range as key support for Nifty in the short-term, and caution of further weakness in Bank Nifty in the H2FY27 outlook.

Among the broader indices, Sachin Gupta of Choice Broking expects Nifty Smallcap to outperform, based on the current chart setup. Among sectors, he sees relative strength in pharma and healthcare.

The weakness in IT stocks was followed by the US Federal Reserve's decision to hike the key lending rate by 0.25 basis points to 3.75-4 per cent.

Indian IT stocks have been one of the biggest casualties of AI boom, having lost 21 per cent on a year-to-date basis.

n the IT basket, stocks registered declines in the range of 5-9 per cent. Based on the day's low, Coforge emerged as the biggest loser with an 8.7 per cent fall.

In the IT basket, stocks registered declines in the range of 2-4 per cent. Infosys emerged as the biggest loser with a 3.8 per cent fall.

So far this month, the IT index remains unchanged. In July, it recorded its best gain in six months following a 17 per cent rise.

Lower growth in passive fund AUMs vis-a-vis Nifty IT indicate about Rs 280 cr outflow

The Nifty IT pack rebounded with an 18.4 per cent rise this month. Before this, Nifty IT's best show was in June 2020 when it rose 22.5 per cent.

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Among sectoral indices, the BSE IT surged 16% followed by Consumer Durables (9%), Realty (8%) and Auto (6%). On the flip side, Capital Goods and Power indices declined 7% and 6%, respectively.

The Nifty IT index rebounded over 21 per cent after hitting its 52-week low of 25,699.10 on July 1, 2026.

The sharp gains in IT stocks today follow easing valuations, a decent Q1 show, and an improving outlook after a sharp selloff this year.

Laxmikant Shukla, technical analyst at YES Securities maintains a constructive view on HCL Tech, Tech Mahindra and TCS, and predicts up to 14 per cent upside for these stocks.

Gains in IT index were led by large-cap IT stocks, with HCLTech, LTIMindtree and Persistent Systems among the key contributors

The NSE IT index declined nearly 2% in Thursday's early trade, dragged by TCS and Infosys. TCS to announce Q1 results after market hours today.

The Nifty IT currently quotes around 20 per cent below its 200-DMA. TCS, Infosys, Wipro and HCL Technologies are down in the range of 21-26 per cent form respective 200-DMAs.