The Indian equity market witnessed a volatile session on Tuesday with the Nifty IT index ending marginally lower by 0.01% amid weakness in broader indices. The BSE Sensex closed down by 426.87 points at 79,025.75 while the Nifty50 shed 108.75 points to settle at 23,915.55 as investors booked profits after a sharp rally in previous sessions.
Nifty IT Index Performance Snapshot
| Stock | Current Price (₹) | Change (₹) | Change (%) |
|---|---|---|---|
| Infosys | 1,548.25 | +3.75 | +0.24 |
| TCS | 3,792.45 | -4.20 | -0.11 |
| Wipro | 494.80 | -1.50 | -0.30 |
| HCLTech | 1,508.90 | +2.10 | +0.14 |
| Tech Mahindra | 1,397.25 | -2.45 | -0.18 |
| LTIMindtree | 5,430.35 | +4.05 | +0.07 |
| Mphasis | 2,622.60 | -3.95 | -0.15 |
| Coforge | 5,196.20 | -7.35 | -0.14 |
| L&T Technology Services | 5,238.85 | +5.20 | +0.10 |
| Persistent Systems | 4,908.50 | -6.10 | -0.12 |
Nifty IT Index Summary
- Opening: 36,025.10
- Day High: 36,175.55
- Day Low: 35,910.35
- Closing: 36,020.45
- Change: -3.60 points (-0.01%)
Factors Impacting IT Stocks Today
- Weak Global Cues: US tech stocks saw mild profit booking overnight as investors await key inflation data and Fed commentary later this week.
- Rupee Strength: The Indian rupee appreciated by 11 paise against the US dollar, reducing near-term export realisation gains for IT firms.
- Profit Booking: After the Nifty IT index rallied nearly 4% in the last five sessions, traders opted to lock in partial gains.
- Macro Uncertainty: Market awaits June US CPI data for clarity on Fed’s interest rate trajectory, impacting IT sector earnings outlook from North American clients.
Sector Outlook
Brokerages remain cautiously optimistic on Indian IT amid global macro concerns:
| Brokerage | View | Comment |
|---|---|---|
| Motilal Oswal | Neutral | “Near-term discretionary spending cuts in BFSI remain a concern. Focus on cost takeout deals and AI integration opportunities for H2 recovery.” |
| ICICI Securities | Positive | “Valuations reasonable; prefer Infosys, HCLTech, and LTIMindtree for deal pipeline strength.” |
| Kotak Institutional Equities | Cautious | “US macro slowdown weighs on outlook. FY26 growth recovery expected, but near-term volatility likely.” |
Recent Developments Impacting IT Sector
| Company | News | Impact |
|---|---|---|
| Infosys | Signed $1.5 billion AI and cloud deal with a US client | Positive revenue visibility |
| TCS | CEO said FY26 growth will accelerate as discretionary spending revives | Stock stable |
| Wipro | Undergoing leadership restructuring to improve BFSI vertical performance | Market awaits impact |
| HCLTech | Expanding GenAI service offerings in Europe | Incremental growth lever |
| LTIMindtree | Won multi-year digital transformation deal with UK bank | Strengthens BFSI exposure |
Global Tech Market Snapshot
- NASDAQ Composite: Closed 0.22% lower at 18,380.50 amid profit booking in AI and cloud stocks.
- US 10-year bond yields: Rose to 4.31%, weighing on tech valuations.
- US CPI Data: Due Thursday; forecast at 3.1% YoY, with core CPI at 3.4%.
IT Sector Valuation Metrics
| Stock | FY25E P/E | PEG Ratio | Dividend Yield (%) |
|---|---|---|---|
| Infosys | 22.5x | 1.8 | 2.2 |
| TCS | 27.0x | 2.1 | 1.4 |
| Wipro | 19.8x | 1.6 | 1.1 |
| HCLTech | 21.3x | 1.7 | 2.8 |
| LTIMindtree | 29.5x | 2.4 | 0.9 |
Analysts expect earnings upgrades in H2FY26 if US macro conditions stabilise and AI-driven cost transformation deals accelerate.
Market Sentiment And Technical View
The Nifty IT index formed a small-bodied candle on the daily chart, indicating indecisiveness. Technical analysts suggest:
- Support Level: 35,800
- Resistance Level: 36,350
- Momentum Indicator RSI: Currently at 58.2, indicating neutral zone.
“IT index remains in sideways consolidation after recent gains. A breakout above 36,350 will open the path to 36,800 while breach of 35,800 can trigger mild profit booking,” said a Mumbai-based technical analyst.
Social Media Reactions
- “IT index flat despite weak market shows sector resilience.”
- “Waiting for US inflation data to enter Infosys again.”
- “IT stocks range-bound; long-term investors can accumulate on dips.”
Sector Opportunities Ahead
Capgemini CEO Aiman Ezzat recently warned that not all AI investments yield positive ROI, yet Indian IT firms continue to aggressively build AI capabilities to stay competitive in:
- GenAI application development
- AI-based infrastructure automation
- AI cybersecurity solutions
- AI consulting for enterprise clients
Broader Market Summary
| Index | Closing | Change (points) | Change (%) |
|---|---|---|---|
| Sensex | 79,025.75 | -426.87 | -0.54 |
| Nifty50 | 23,915.55 | -108.75 | -0.45 |
| Nifty Bank | 52,005.35 | -212.65 | -0.41 |
| Nifty IT | 36,020.45 | -3.60 | -0.01 |
Selling was seen across sectors with PSU banks, realty, and metals declining the most. FMCG stocks provided mild support to indices.
Conclusion
The Nifty IT index closed marginally lower amid a weak broader market as traders booked profits post recent gains and awaited key US macro data later this week. Sector fundamentals remain stable with large deal wins and AI-led transformation opportunities, but near-term volatility is expected due to global growth concerns and fluctuating currency trends. Analysts advise a stock-specific approach in the sector with Infosys, HCLTech, and LTIMindtree among preferred picks for sustained growth visibility.
Disclaimer
This news article is prepared for general market information based on NSE data, analyst insights, and company announcements. Readers are advised to consult SEBI-registered financial advisors before making any investment decisions.
