Laxmikant Shukla, technical analyst at YES Securities maintains a constructive view on HCL Tech, Tech Mahindra and TCS, and predicts up to 14 per cent upside for these stocks.
Shrikant Chouhan, head of equity research at Kotak Securities, explains why the brokerage has assigned Buy ratings to ONGC and Tech Mahindra
However, despite recovery from lows, the Nifty IT index underperformed the market by falling 22 per cent, as against a 7.2 per cent decline in the Nifty 50 thus far in CY2026.
Brokerages said that TechM's Q1 revenue and margins exceeded estimates, and strong deal TCV provides strong revenue visibility.
Revenue from operations increased 17.7 per cent to ₹15,711.9 crore, while EBIT rose 53.3 per cent and new deal wins reached $1.08 billion
Gains in IT index were led by large-cap IT stocks, with HCLTech, LTIMindtree and Persistent Systems among the key contributors
Wipro, Tech Mahindra, Jio Financial Services, BHEL and ITC Hotels among the top companies slated to post their April-June quarter earnings today.
TechM Q1 Preview: On average, analysts expect Tech Mahindra to post a growth of 40 per cent or more for Q1 FY27 as ramp-up in large deals could push revenue by 15 per cent.
At 12:44 PM on Monday, the Nifty IT index was the top gainer among sectoral indices, up 4.24 per cent, as compared to 0.01 per cent rise in the Nifty 50.
At 09:38 AM on Friday, the Nifty IT index was the top gainer among sectoral indices, up 1.8 per cent, as compared to a 1 per cent rise in the Nifty 50.
In the past four trading days, IT index outperformed the market by soaring 9 per cent, as against a 2 per cent gain in the Nifty 50.
The Nifty IT currently quotes around 20 per cent below its 200-DMA. TCS, Infosys, Wipro and HCL Technologies are down in the range of 21-26 per cent form respective 200-DMAs.
In the past 20 trading days, the Nifty IT index tanked 17 per cent, as against a 2.2 per cent rise in the Nifty 50 till Wednesday.
As per data, the Nifty IT Index has corrected nearly 42 per cent from its all-time high of 46,089, recorded in December 2024, and is now trading close to its April 2023 lows.
Tech Mahindra will deploy Perplexity Enterprise Pro across its sales and customer-facing teams to improve access to AI-powered, source-backed insights and strengthen client engagement
Dividend stocks: Among the announcements, Swaraj Engines has declared the highest final dividend of ₹110 per share, with July 3, 2026, as the ex-dividend date
Stocks to Watch today: IRFC, Yes Bank, Ola Electric, Bajaj Auto, Infosys, Tech Mahindra, City Union Bank, Rajesh Exports, PFC, Honasa Consumer are among other stocks that will be in focus today.
In the past three weeks, the Nifty IT index tanked 13 per cent, as against 2 per cent rise in the Nifty 50.
Indian IT stocks fell on Friday as Accenture narrowed its annual revenue growth forecast and issued weaker-than-expected fourth-quarter guidance, despite steady quarterly earnings.
Fed decision, weak US cues: At 10:18 AM on Thursday, the Nifty IT index was the top sectoral loser, down 1 per cent, as against a 0.10 per cent rise in the Nifty 50.