The global research and broking house has cut their earnings estimates by 1-4 per cent across IT firms and expects 6 per cent earnings CAGR over FY26-28.
Analysts at Geojit Investments and Choice Broking are bullish on Tech Mahindra stock, and view the current fall as a correction rather than trend reversal.
Sensex Today | Stock Market LIVE Updates, Thursday:In the broader market, the BSE Midcap 150 index slipped 0.5 per cent, while the SmallCap 250 dipped nearly 1 per cent.
ADRs of Wipro and Infosys fell by up to 3.3 per cent on Wednesday, extending losses after declining around 6 per cent amid rising concerns about the global tech sector
The Nifty IT index plummeted 5.9 per cent, the steepest intraday fall since April 7, 2025, with the fall led by Persistent Systems, LTIMindtree, and Infosys
TechM's new deal wins for the quarter came in at $1.1 billion, up 47 per cent from $745 million last year. On a sequential basis, TCV was up 34 per cent.
Analysts expect margin to improve, supported by favourable seasonality in the products business, AI-led productivity gains and the benefit of a weaker rupee
The Nifty IT index needs to breakout above 38,500 resistance, for a likely 13 per cent rally, says Kunal Shah, Senior Technical Analyst at Mirae Asset ShareKhan.
Analysts said key factors to watch will include TCS's measures underway to accelerate revenue growth, deal pipeline, and overview of client budgets and progress on planned data centre investments
IT companies are projected to report subdued growth in the third quarter of FY26, as ongoing pressure on discretionary spending continues to impact the sector
Analysts believe that valuation comfort coupled anticipated revival in earnings and possible reversal of AI trade offer a better risk-reward scenario for Indian IT firms.
