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Informist, Friday, May 30, 2025

MUMBAI – Information technology stocks are expected to largely consolidate in June after their rally in May, analysts said. Preview commentary by IT companies' management about the June quarter performance, starting from the second week of June, will decide these stocks' direction, Rishubh Vasa, a research analyst covering the sector at IndSec Securities, said.  

Analysts expect Apr-Jun to be a mixed-to-dull quarter for IT companies with discretionary spending yet to recover. Though analysts expect US tariff measures to have a minimal impact on the overall sector, persistent weakness in the demand environment driven by tariff-related concerns are expected to impact IT companies in the near-to-medium term. 

Analysts expect a rebound in the sector from the second half of 2025-26 (Apr-Mar). Overall, FY26 is set to be another low-growth year for the sector, given US tariff-related uncertainty in the first half, HSBC Research said in a report Monday. 

"If it (Nifty IT index) crosses 38500 next week, then we should be able to see anywhere around 41300-41350 levels or 41500 levels," Vasa said. This week, the Nifty IT index fell 0.2% to end at 37321.75 Friday. While most constituents of the index fell over the week, Coforge rose nearly 3%, while Wipro, Mphasis and LTIMindtree remained largely flat. L&T Technology Services fell nearly 3%. However, on a monthly basis, the index ended in the green, snapping its three-month losing run.

TOP HEADLINES

* Firstsource Solutions launches gigsourcing platform
* Payments received by Amazon on cloud svcs not royalty, can't be taxed - HC
* SC declines urgent stay on insolvency process against BYJU's parent company
* Coforge launches two AI platforms to drive enterprise AI adoption
* Aramco Digital, LTIMindtree launch IT svcs co NextEra in Saudi Arabia
* Birlasoft Jan-Mar consol PAT down 32.2% on year as sales fall 3.4%
* NCLT approves merger of Iluminar Media with FSN E-Commerce arm
* Infosys launches solution to develop, deploy enterprise AI agents
* Earnings Review: Info Edge Jan-Mar PAT rises 27% QoQ but misses view
* Promoter to exercise oversubscription option in Sagility India OFS
* Sonata Software, Qualtrics partner to transform solution for global brands
* Infosys collaborates with Europe's E.ON for digital workplace transformation
* BIS conducts search, seizes goods at Brainbees Solutions' Bangalore warehouse
* Coforge partners with US-based Nylas to redefine Salesforce ecosystem
* Brainbees Solutions Jan-Mar consol net loss widens YoY to INR 767.42 mln
* Promoter to sell 7.39% shr in Sagility India via OFS, floor price INR 38/shr

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

End

Reported by Arya S. Biju

Edited by Deepshikha Bhardwaj

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