In the past one month, TCS, Infosys, Tech Mahindra, HCL Technologies, LTIMindtree, Persistent Systems and L&T Technology Services have rallied between 9 per cent and 15 per cent.
Tech companies are, typically, at an advantage when the Indian Rupee depreciates against the Dollar
On Monday, the rupee advanced amid reports that the RBI resumed efforts to support currency via overseas and onshore markets
Analysts attributed the up move to a pullback rally after sharp declines in past sessions. The index is currently 22.72% below its 52-week high of 46,088.90 and is down about 14.8% so far this year.
Technical charts suggest that the IT index may gain another 5%, with heavyweights Infosys, TCS and HCL Technologies possibly rallying up to 17%. Wipro and Tech Mahindra, however, may see tepid trends.
Since September 30, the Nifty IT index has outperformed the market by surging 6.4 pee cent as compared to a 4-per cent rise in the Nifty 50 index
Analysts remain mixed on IT stocks' outlook, with some cautioning that the optimism around the technology pack could be short-lived
Revenue growth for Infosys is likely to be led by the recent deal ramp-ups and inorganic contribution from its recent acquisitions, analysts said
Analysts said TCS delivered a strong performance in Q2 despite prevailing challenges, with the India business continuing to show robust growth
BFSI and Hi-tech segments are expected to perform better for HCL Tech, while manufacturing is likely to remain under pressure
Accenture Q4FY25 results near top of guidance, but analysts remain cautious on Indian IT stocks amid macro uncertainty, weak discretionary spending, and H-1B risks
The BSE IT index also fell 3.5 per cent in the intraday trade. Thus far in calendar year 2025, the BSE IT index has underperformed the market by sliding 19 per cent
IT stocks such as Infosys, TCS and 3 others could see limited downside from current levels, as they are trading above key support levels, backed by positive cues from momentum oscillators, show charts
Another silver lining for the companies and the markets, analysts said, is the falling dependence on the H-1B visa in the last few years.
Infosys shares have historically rebounded post buyback approvals over long term, rising 22 per cent over six months in 2021. Will this time be any different?
The Nifty IT Index has underperformed the broader markets in the last 3 months and 6 months, owing to macro uncertainties
Infosys shares rose after it said that its board will consider a share buyback proposal at its meeting on September 11, 2025.
Nuvama, in a recent report, upgraded the IT sector to 'Overweight' from 'Underweight', noting that the space has largely become a trading and relative valuation call
Nearly 80 per cent of stocks from Nifty Auto, IT and FMCG indices are seen trading above the short-term moving average, indicating strength in the sector, says Axis Securities in a report.
Among individual stocks, Infosys, Wipro, Oracle Financial Services Software, and Mphasis shares rose 3 per cent each on Monday