Indian IT stocks bounced back to trade higher on Thursday, despite a broader sell-off in the Indian stock market today. The Nifty IT index gained over 0.4%, with eight of its ten constituents trading in the green.
Coforge, LTIMindtree, Persistent Systems, and HCL Technologies rallied 1-2%, while Mphasis, Wipro, Tata Consultancy Services (TCS) and Tech Mahindra also traded higher.
In contrast, Oracle Financial Services Software and Infosys traded over half a percent lower each.
The gains in IT stocks came despite a sharp sell-off in the Indian stock market today amid worries over the prolonged US-Iran war. The benchmarks Sensex and Nifty 50 slipped over 2% during the session.
The Sensex crashed 1,037.63 points, or 1.42%, and was trading at 72,096.69, while the Nifty 50 was down 326.80 points, or 1.44%, at 22,354.70.
The Indian stock market crashed today, mirroring losses in global markets, after the US President Donald Trump said that the war in Iran could intensify over the next two to three weeks.
In a speech earlier today, Trump said that the US was going to “hit” Iran “extremely hard” in the next 2-3 weeks, also outlining that the US forces will “finish the job” in Iran soon as “core strategic objectives are nearing completion.”
Markets rattled globally and crude oil prices surged after Trump’s speech, with the benchmark Brent oil futures rising over 6% to above $107 per barrel.
However, IT stocks showed resilience against the stock market crash today, and rebounded from morning lows to trade higher.
IT Sector Q4 Results Preview
The Indian IT companies are expected to report muted earnings performance in the fourth quarter of FY26, but with a stable to improving year-on-year (YoY) growth trajectory. The March quarter benefits from the absence of furloughs, particularly in BFSI and retail, although this is partly offset by a lower number of working days.
Revenue growth is expected to remain muted in Q4FY26 across many companies in the IT sector, although the YoY growth profile should improve for several companies. The financial services vertical is likely to lead growth sequentially.
Moreover, a sharp depreciation of rupee against the US Dollar is expected to support double-digit earnings growth for many IT companies, according to estimates from Kotak Institutional Equities.
The brokerage firm expects TCS to lead revenue growth among Tier-1 companies, while Persistent Systems will lead the charge among mid-tier companies.
Guidance for FY27 will be shaped by geopolitical uncertainty from the US-Iran war and increasing revenue deflation from GenAI-led programs.
Tech Mahindra, TCS, Infosys and Coforge are Kotak Equities’ key stock picks in the IT sector.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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