The correction in the tech pack has been driven by mounting concerns among investors over the potential impact of AI on the sector's growth outlook
Investors confront reversal as decade-long IT rally unwinds, reshaping Nifty's sector hierarchy
Heavy weights HDFC Bank, RIL, ICICI Bank drag down benchmark indices by over a per cent
The Nasdaq IT services basket has corrected meaningfully, dragging Indian IT ADRs lower and triggering a risk-off sentiment that has spilled into domestic markets, said ICICI Securities.
TCS, Wipro, Infosys, Coforge, Tech Mahindra, Persistent Systems, HCL Technologies, LTIMindtree and Mphasis were down in the range of 4 per cent to 5 per cent in intra-day trade on Thursday.
Cyient, Birlasoft, Cigniti Technologies, eClerx Services and Tata Technologies were down between 4 per cent and 6 per cent in Friday's intra-day trade.
Improved policy optics could encourage US enterprises to advance discretionary tech spending and GCC expansion, even though immediate revenue or margin acceleration for IT firms is unlikely.
Analysts anticipate a stronger growth recovery for IT sector in FY27 compared to FY26, driven by an improvement in demand, more stable macro conditions, increased budgetary spending and deal ramp-ups.
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.
Since October 2025, IT index has rallied 17 per cent, as compared to 6 per cent rise in the Nifty 50.
The Nifty IT index rose as much as 1.09 percent to 39,054.3 so far today. Most constituents of the Nifty IT were trading in green.
$1.59 billion in contracts fires revenue boosters; margin gains provide sustained lift
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