More Stories

Informist, Thursday, May 22, 2025

MUMBAI – Information technology stocks are expected to be volatile in the near term, with companies in North America trimming their forecasts for IT spending in the financial year 2025-26 (Apr-Mar). Indian IT companies earn a major portion of their revenue from the US and any pressure on the US economy could adversely affect their financial performance. Additionally, some analysts expect IT companies with higher exposure to revenue from the US to face increased pressure on margins with the rupee appreciating against the dollar.

"IT stocks will see short-term volatility and pressure due to the constrained IT budgets of North American and US companies," an equity research analyst at a domestic brokerage said. He suggested a "wait-and-watch" approach on IT stocks until further clarity on the revival of discretionary spending and the current tariff-triggered macroeconomic uncertainty. Piyush Pandey, senior vice-president of institutional equity research at Centrum Broking, expects IT stocks to remain largely range-bound in the near term with no major triggers.

Following the announcement of the March quarter earnings, companies shared mixed views on the impact of US tariff-related disruptions. While Infosys and LTIMindtree reported limited impact, Tech Mahindra, Wipro, and HCL Technologies cited delays in decision-making by clients amid a cautious stance owing to fears of potential inflation in the US and geopolitical pressures, IDBI Capital said in a report Tuesday.

Over the week, the Nifty IT index fell 1.5% and ended at 37403.55 points Friday, up nearly 1% from Thursday's close. While most of the constituents of the index fell over the week, shares of L&T Technology Services, LTIMindtree, Persistent Systems, and HCL Tech remained largely flat. With shares falling 2.7% over the week, Wipro was the worst performer, followed by Tech Mahindra and Mphasis, both of which fell 2.3%. Next week, the index is seen finding support at 36667.30 points and resistance at 38194.50 points.

TOP HEADLINES

* Earnings Review: ITC Q4 net profit soars on profit from hotel demerger
* TCS partners with Finland-based DNA to manage cloud migration program
* Telecom ministry launches fincl fraud risk indicator to curb cyber crime
* Infosys, LogicMonitor in pact for transforming performance of IT operations
* Tejas Networks to supply radio access network pdts worth INR 15 bln to TCS
* Bank of Sydney selects Infosys arm's banking suite to power transformation
* TCS bags INR 29.03-bln purchase order from BSNL for 4G mobile network
* Sonata Software launches platform AgentBridge for enterprise transformation
* Mastek board approves appointment of Raghavendra Jha as CFO
* Sonata Software, Quant Systems ink pact to incorporate payments, defer dues
* Zen Technologies Jan-Mar consol PAT triples YoY to INR 1 bln, sales double
* Newgen Software gets patent for system and method for data compression

Following are the resistance and support levels for the stocks for next week as per calculations based on their prices on the National Stock Exchange:

End

US$1 = INR 85.21

Reported by Arya S. Biju

Edited by Rajeev Pai

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.