Nifty IT defies market weakness, rises 2%; Mphasis, Coforge, TCS lead

IT  stocks zoom: Shares of IT companies zoomed on Thursday ahead of their second-quarter results for the financial year 2027. 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. The index was the top sectoral gainer in Thursday’s session.

 

Analysts' consensus estimates suggest the IT industry’s 2QFY27 results are likely to mirror the tepid macro environment, with q-o-q constant currency growth expected in the range of negative 0.5 per cent to 3 per cent for large-caps. Mid-caps are expected to outperform once again, with growth likely to go up to to 12 per cent, led by continued large-deal ramp-ups and inorganic contribution in some cases.

 

 

Among the constituents of the Nifty IT index, at the last check, Mphasis led the IT pack with a 4.44 per cent gain, followed by Coforge at 3.85 per cent and Infosys at 2.42 per cent. TCS, HCL Technologies and Tech Mahindra gained 1.70 per cent, 1.56 per cent and 1.44 per cent, respectively. Persistent Systems, Wipro and LTIMindtree also traded higher, while Oracle Financial Services Software was the lone laggard, down 0.97 per cent.

 

Meanwhile, the benchmark equity indices, NSE Nifty 50 and BSE Sensex, continued to decline on Thursday. The Nifty 50 fell 0.49 per cent intraday to trade at 22,508.05. As of 10:52 AM the index was trading 0.23 per cent lower at 22,568.15

 

Similarly, the BSE Sensex fell to an intraday low of 72,187.62, down 0.40 per cent. As of 10:53 AM, the index was trading 0.06 per cent lower at 72,480.29

 

The IT earnings season for Q2FY27 is scheduled to commence on Thursday, October 8, 2026, with TCS scheduled to announce its September-quarter results on Oct 8. The company's board will meet to approve the standalone and consolidated results and will also consider declaring a second interim dividend.

 

Motilal Oswal Financial Services noted that, “We expect demand commentary to remain soft into 2QFY27, despite it being a seasonally strong quarter, as macro pressures, interest rate hikes, AI-related disruptions, and geopolitical overhang continue to weigh on discretionary spending and decision-making cycles.” 

 

It added that against this backdrop, the brokerage does not expect q-o-q growth acceleration across our coverage universe in 2QFY27, with softness likely to extend into 3QFY27 due to furloughs as well.

 

Kotak Institutional Equities noted that demand conditions have neither improved nor deteriorated since the June 2026 quarter. Expect another muted quarter for large companies, with HCLT being the notable exception. TechM will lead growth among hybrids, while mid-tier companies will report strong growth led by PSYS, Coforge and MPHL. 

 

The brokerage further expects stable margins, though the underlying stress is becoming increasingly visible in operating metrics. We expect a guidance cut from Infosys and an unchanged midpoint for HCLT's growth outlook. 

 

“AI deflation is now becoming visible in the base business. Challengers continue to offset this through share gains and stronger execution, while incumbents are largely defending existing revenues. Our preferred picks remain TechM, Coforge, Sagility and Indegene,” Kotak note said.   Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.