IT shares: Analysts expect IT companies to witness moderate improvement in Q2FY27, as macro headwinds from the Middle East conflict continue to weigh on client spending and decision-making.
IT services firms are targeting GCCs for scale, steady revenue and domain expertise as weak organic growth and AI put pressure on traditional contracts
The Nifty IT index advanced 2.1 per cent during intra-day deals, with nine out of ten constituent stocks of the index trading in the green.
Stocks to watch today: Reliance Industries, NSE, HDFC Bank, IRFC, Infosys, Cupid, Blue Dart, OMCs, STL Networks, RBL Bank, among others will be in focus today
Going ahead, analysts suggest investors stick to domestic economy-focused sectors as the geopolitical situation still warrants caution.
Earlier, in the first nine months of the calendar year 2011, the BSE Sensex and Nifty had plunged 19.8 per cent and 18.9 per cent, respectively.
The sell-off was driven by high US bond yields, a strong dollar, FPI outflows, crude oil concerns and weakening domestic growth signals.
The Nifty IT index has underperformed in September, falling over 11%, as against a 6% decline in the Nifty 50.
18 of the 50 Nifty stocks are trading more than 20 per cent below their respective 52-week highs, with a market cap erosion of ₹31.35 lakh crore in the same period.
Bogged down by crude oil prices trading above $100, the Nifty 50 index has lost 5 per cent during the six-week selloff, which is also its longest since 2020.
Indian IT stocks have been one of the biggest casualties of AI boom, having lost 21 per cent on a year-to-date basis.
n the IT basket, stocks registered declines in the range of 5-9 per cent. Based on the day's low, Coforge emerged as the biggest loser with an 8.7 per cent fall.
In the IT basket, stocks registered declines in the range of 2-4 per cent. Infosys emerged as the biggest loser with a 3.8 per cent fall.
IT stocks rallied on Friday after Nvidia's strong revenue forecast reinforced optimism around the artificial intelligence (AI) boom.
Industry body says Indian IT firms have stepped up local hiring and invested over $1.1 billion in strengthening the US STEM pipeline amid proposed higher visa fees
The average variable payout remained unchanged from the fourth quarter but was lower than the 80 per cent paid for the same period last year amid macroeconomic volatility
AI is pushing Indian IT companies towards outcome-based pricing, with newer deals increasingly linking payments to measurable business results
IT Q1FY27 review: As per MOFSL, revenue growth in Q1 was led by Tier-2 pack IT services companies. Tier-1 players grew 0.4 per cent Q-o-Q CC, while Tier-2 players outperformed with 1.8 per cent growth
In the past one week, Nifty IT index has corrected 4.8 per cent, compared to 1.2 per cent decline in the Nifty 50.
Large contracts are supporting deal values at Indian IT firms, but weaker discretionary spending and AI-led pricing pressure are squeezing the flow of smaller projects