Earlier this week, Jefferies downgraded Indian IT companies Infosys, HCLTech and MphasiS to 'hold'; LTIMindtree, TCS and Hexaware to 'underperform'.
Individually, HCLTech shares were up 3.57 per cent; Infosys, Tech Mahindra, TCS, and Wipro were trading over 2 per cent higher
The total mcap of BSE listed companies dropped by ₹4.73 trillion to ₹4,63,79,242 crore versus the previous session's mcap of ₹46,852,324.31 crore.
The Nifty IT index has lost over 19 per cent in CY26 as compared to a nearly 2 per cent dip in the Nifty 50 index during this period
The global research and broking house has cut their earnings estimates by 1-4 per cent across IT firms and expects 6 per cent earnings CAGR over FY26-28.
The correction in IT stocks has been driven by mounting concerns among investors over the potential impact of AI on the sector's growth outlook
Over the past two trading sessions, the Nifty IT index has declined 7 per cent, while losses over the last seven trading days stand at 14 per cent
Analysts at Geojit Investments and Choice Broking are bullish on Tech Mahindra stock, and view the current fall as a correction rather than trend reversal.
Sensex Today | Stock Market LIVE Updates, Thursday:In the broader market, the BSE Midcap 150 index slipped 0.5 per cent, while the SmallCap 250 dipped nearly 1 per cent.
ADRs of Wipro and Infosys fell by up to 3.3 per cent on Wednesday, extending losses after declining around 6 per cent amid rising concerns about the global tech sector
The Nifty IT index plummeted 5.9 per cent, the steepest intraday fall since April 7, 2025, with the fall led by Persistent Systems, LTIMindtree, and Infosys
Budget 2026 has proposed a tax holiday till 2047 for IT companies providing cloud services using India-based data centres.
TechM's new deal wins for the quarter came in at $1.1 billion, up 47 per cent from $745 million last year. On a sequential basis, TCV was up 34 per cent.
Analysts expect margin to improve, supported by favourable seasonality in the products business, AI-led productivity gains and the benefit of a weaker rupee
The Nifty IT index needs to breakout above 38,500 resistance, for a likely 13 per cent rally, says Kunal Shah, Senior Technical Analyst at Mirae Asset ShareKhan.
Analysts said key factors to watch will include TCS's measures underway to accelerate revenue growth, deal pipeline, and overview of client budgets and progress on planned data centre investments
IT companies are projected to report subdued growth in the third quarter of FY26, as ongoing pressure on discretionary spending continues to impact the sector
Antique expects near-term moderation in technology spending in the US, given subdued consumer confidence and cautious end-demand trends
Analysts believe that valuation comfort coupled anticipated revival in earnings and possible reversal of AI trade offer a better risk-reward scenario for Indian IT firms.
Analysts think financials, metals, and IT sectors are trading at 'relatively' better values and may offer suitable entry points at current levels