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.
Kunal Kamble, technical analyst at Bonanza decodes trading strategies in IT stocks - Infosys, TCS, HCL Technologies, L&T Technology Services and Tata Elxsi post Q3 earnings. Here's what expert says.
TCS Q3 results impact: The common thread across analysts is that while Q3 execution remains strong and margins resilient, clear visibility on broad-based demand acceleration is still missing.
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
At the core of TCS's vision is a five-pillar framework designed to reorient the company from a digital-first services model to AI-centric enterprise transformation.
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.
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.
The longer-term chart suggests that the overall trend for TCS is likely to remain subdued as long as the stock trades below ₹3,450 levels; on the downside it can crack up to ₹2,655 levels.
Infosys, TCS, HCL Technologies and Tech Mahindra are scheduled to announce Q2FY26 results in the next 10 days; here's a technical check on these 4 IT shares.
A majority of Tata group stocks including TCS, Tata Elxsi, Trent, Voltas and 6 others have declined over 22% so far this year. Here are 3 Tata group stocks that can gain up to 28% going ahead.
