Nifty IT Index

Improved policy optics could encourage US enterprises to advance discretionary tech spending and GCC expansion, even though immediate revenue or margin acceleration for IT firms is unlikely.

Analysts anticipate a stronger growth recovery for IT sector in FY27 compared to FY26, driven by an improvement in demand, more stable macro conditions, increased budgetary spending and deal ramp-ups.

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.

Since October 2025, IT index has rallied 17 per cent, as compared to 6 per cent rise in the Nifty 50.

The Nifty IT index rose as much as 1.09 percent to 39,054.3 so far today. Most constituents of the Nifty IT were trading in green.

$1.59 billion in contracts fires revenue boosters; margin gains provide sustained lift

In the past one month, TCS, Infosys, Tech Mahindra, HCL Technologies, LTIMindtree, Persistent Systems and L&T Technology Services have rallied between 9 per cent and 15 per cent.

Tech companies are, typically, at an advantage when the Indian Rupee depreciates against the Dollar

On Monday, the rupee advanced amid reports that the RBI resumed efforts to support currency via overseas and onshore markets

Analysts attributed the up move to a pullback rally after sharp declines in past sessions. The index is currently 22.72% below its 52-week high of 46,088.90 and is down about 14.8% so far this year.

Technical charts suggest that the IT index may gain another 5%, with heavyweights Infosys, TCS and HCL Technologies possibly rallying up to 17%. Wipro and Tech Mahindra, however, may see tepid trends.

Since September 30, the Nifty IT index has outperformed the market by surging 6.4 pee cent as compared to a 4-per cent rise in the Nifty 50 index

Analysts remain mixed on IT stocks' outlook, with some cautioning that the optimism around the technology pack could be short-lived

Revenue growth for Infosys is likely to be led by the recent deal ramp-ups and inorganic contribution from its recent acquisitions, analysts said

Analysts said TCS delivered a strong performance in Q2 despite prevailing challenges, with the India business continuing to show robust growth

BFSI and Hi-tech segments are expected to perform better for HCL Tech, while manufacturing is likely to remain under pressure

Accenture Q4FY25 results near top of guidance, but analysts remain cautious on Indian IT stocks amid macro uncertainty, weak discretionary spending, and H-1B risks

The BSE IT index also fell 3.5 per cent in the intraday trade. Thus far in calendar year 2025, the BSE IT index has underperformed the market by sliding 19 per cent

IT stocks such as Infosys, TCS and 3 others could see limited downside from current levels, as they are trading above key support levels, backed by positive cues from momentum oscillators, show charts

Another silver lining for the companies and the markets, analysts said, is the falling dependence on the H-1B visa in the last few years.