In the past three sessions, the Nifty IT index has climbed as much as 6 per cent, while the Nifty index has declined 2.50 per cent.
Today's sharp outperformance in the IT sector was driven by overnight rally in tech stocks on the Wall Street and company-speciific developments back home.
Coforge has rallied 12 per cent in the last three trading sessions. Technical analyst at Geojit highlights the formation of a higher-high on the weekly chart among key reasons.
Nifty outlook for today: Option data suggests a broader trading range in between 23,200 to 24,100 zones while an immediate range between 23,400 to 23,900 levels.
Prashanth Tapse of Mehta Equities said that while IT stocks have seen some improvement in price, the broader fundamentals of the sector remain challenging due to relatively subdued growth expectations
The Nifty IT index has corrected 27 per cent on a Y-T-D basis, in comparison, the Nifty 50 index has declined 9.5 per cent in the same period.
Nifty IT index has fallen nearly 25 per cent year-to-date, compared with an 8.85 per cent decline in the benchmark Nifty50
Elara Capital has upgraded its rating to 'Accumulate' from 'Reduce', while Choice Institutional Equities has reaffirmed its 'Buy' rating following the Q4 results
Stocks to Watch today, May 5, 2026: Marico, SRF, United Breweries, Poonawalla Fincorp, Ather Energy, and Punjab National Bank are among the top stocks to watch during today's trading session
LTIMindtree was the top loser, down nearly 6 per cent, followed by Coforge, Infosys, and Mphasis, falling over 5 per cent each
IT stocks came under sharp selling pressure today after HCLTech's Q4 results and weak growth guidance.
Coforge, Infosys, Mphasis and Tata Consultancy Services (TCS) slipped over 3 per cent
Fernandes to oversee global delivery and key operations, with a mandate to scale execution and accelerate adoption of AI-native practices across engineering and internal systems
IT Q4 results preview: While the recent sharp depreciation of INR against the USD is likely to provide a significant cushion to earnings, the focus has shifted toward FY27 guidance
Coforge has entered into a strategic partnership with Solstice Innovations, Inc. to accelerate agentic AI-led adoption of modern core insurance technology for P&C insurers
The buying on the counter came after the company received the Reserve Bank of India's (RBI's) approval for overseas investment of more than $1 billion for the deal with Encora
Individually, Mphasis shares were up 3.15 per cent, followed by Infosys, Tech Mahindra, Persistent Systems, HCLTech, Oracle Financial Services Software, and LTIMindtree up over 2 per cent.
Indian IT firms derive a major portion of revenue from the US market, making them sensitive to changes in interest rate expectations and inflation trends
Nifty IT index: Today's rebound in IT stocks followed a sharp decline over the past six sessions, during which the index had lost 4.6 per cent
IT stocks to buy: ICICI Securities has upgraded Coforge to 'BUY' from 'Hold'; Mphasis to 'Buy' from 'Add', based on their attractive valuation and healthy revenue growth visibility