Cyient, Birlasoft, Cigniti Technologies, eClerx Services and Tata Technologies were down between 4 per cent and 6 per cent in Friday's intra-day trade.
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
Persistent Systems share price today: Market participants attributed the decline largely to profit booking after a sharp rally over the past few months rather than any deterioration in fundamentals.
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.
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.
Nomura, which termed Coforge its "top pick in the mid-cap India IT services sector," said the company is banking on a solution-led sales strategy to maintain its growth trajectory.
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.
Valuations across the sector remain attractive, but Nomura stays selective. It has rolled forward its valuation framework to H1FY28 while maintaining target multiples.
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.
