Analysts believe HCL Technology's softer revenue guidance versus expectations and an AI deflation impact of 3-5% will likely raise concerns about overall industry growth for FY27.
Anand James, chief market strategist at Geojit Investments highlights that Infosys and HCL Technologies look weak on charts as both were trading below March lows and the lower-end of Bollinger Bands.
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.
HCLTech guided for revenue growth of 1-4 per cent in CC at the company level, and 1.5-4.5 per cent for its services business - the lowest in at least six years
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Client cutbacks, macro jitters trim growth expectations
HCLTech CEO and MD C Vijayakumar termed the year as one with an uncertain demand environment
Q4FY26 company results: Firms including Persistent Systems, Tata Investment Corporation, Cyient DLM, and Sunteck Realty are also to release their January-March earnings today
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HCLTech Q4 results preview: Brokerages tracked by Business Standard estimate HCLTech's net profit at an average of ₹4,716 crore, compared with ₹4,307 crore a year ago
Individually, Oracle Financial Services Software rallied 4.4 per cent, followed by TCS, Wipro, Persistent Systems, Infosys, Mphasis and LTIMindtree up over 2 per cent
Coforge, Infosys, Mphasis and Tata Consultancy Services (TCS) slipped over 3 per cent
All 10 constituents of the Nifty IT index were trading sharply higher. Mphasis, Wipro, Oracle Financial Services Software, HCL Tech, and TCS rose over 2 per cent each
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
Technical charts show that Nifty and its 12 stocks including Infosys, Reliance, Bharti Airtel, Asian Paints, HCL Tech and Bajaj Finance saw their 50-DMA slip below 200-DMA amid March market crash.
In the morning deals, the domestic currency hit a new low at 96.16 against the US dollar
Accenture sees AI-led deal momentum, but analysts remain cautious on Indian IT stocks amid weak demand, macro risks, and uncertain growth outlook
Analysts see the sharp correction in stock prices and dislocation in parts of the market as an opportunity for investors to review their portfolios and make appropriate changes.
IT services firm allows employees at its Chennai centre to work from home as LPG shortages disrupt canteen operations; some peers also see limited food services