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Informist, Friday, Jun. 13, 2025

MUMBAI – Shares of domestic information technology companies are expected to continue their positive momentum in the coming weeks, given no further escalations in US tariff-related concerns. Investors will focus on the outcome of the US Federal Reserve meeting scheduled to begin Tuesday, along with other geopolitical developments.  

While the US Federal Reserve is widely expected to hold interest rates steady in its latest meeting, investors will watch out for commentary on how US President Donald Trump's tariff policies could impact the central bank's decisions moving forward. The central bank is expected to maintain its wait and watch approach despite a better-than-expected US CPI inflation print.

The US CPI headline and core inflation rose 0.1% in May from the previous month, lower than analysts' expectations of 0.3%. Core inflation is now at 2.8% on a year-on-year basis for a third straight month. The impact of Trump's tariff measures is yet to impact these figures. Analysts expect the impact to be visible from August-September.  

During the week, the Nifty IT outperformed the benchmark indices, gaining more than 3% over the week compared to an over 1% fall in both the Nifty 50 and the Sensex. The recent rally in IT stocks came after a brief consolidation phase following its sharp fall on Apr. 7, Rishabh Vasa, a research analyst at Indsec Securities, said. These stocks are now expected to rise more with concerns regarding delays in discretionary spending and deal wins cooling down, analysts said. In the near-term, the resumption of US tariffs after the 90-day break will be a key trigger for IT stocks, Vasa said.   

The Nifty IT, which recently saw a positive breakout on the charts, may continue to show relative strength, Rajesh Bhosale, technical analyst at Angel One said in a note Friday. "While we maintain our positive bias, the sector remains sensitive to global developments, and hence a buy-on-dips approach is preferred," Bhosale added. However, Brijesh Ail, head of technical and derivatives at IDBI Capital Markets and Securities IT stocks to move sideways and has a cautious view on the sector. He expects the Nifty IT index to find resistance at 38800 levels and support at 37500. 

TOP HEADLINES

* PhonePe offloads 5% stake in CE Info Systems for INR 4.86 bln via bulk deal
* Wipro report says US insurers to more than double IT spend on AI in 3-5 yrs
* HC bars Newgen IT from using 'Newgen' in Newgen Software trademark case
* IPO Alert: Arisinfra Solutions fresh issue of shrs to open Wed, close Jun 20
* Cyient's semiconductor arm partners with US-based MIPS for custom solutions
* Happiest Minds appoints Anand Balakrishnan as CFO effective Thursday
* Promoter Azim Premji Trust sells 1.7% stake in Wipro for INR 46.75 bln
* ICICI Bank sells entire 18.8% stake in NIIT Institute of Finance to NIIT
* 3 Brightcom officials settle SEBI's fincl misstatement probe for INR 3.5 mln
* NCLT Bengaluru bench approves merger of Wipro's five arms with co
* Govt denies claim of discount rate fee on UPI transactions, calls it false
* SEBI grants certificate of registration to Jio BlackRock Investment Advisers
* PRESS: ICICI Prudential AMC likely to file for INR-100-bln IPO in 3-4 weeks
* HCL Tech to deliver AI-driven app svc, infra to client Standard Insurance Co
* Wipro extends partnership with German food wholesaler Metro for 2 more years
* HCL Tech to develop secure service edge solution with US-based Cisco
* Promoter Azim Premji Trust sells 2% stake in Wipro for INR 50.58 bln
* Govt amends SEZ rules to facilitate semiconductor, electronics parts mfg
* Jio BlackRock AMC appoints leadership team to drive ops, rolls out website
* Persistent Systems board OKs reappointing Anand Deshpande as MD for 5 years
* Gujarat CM inaugurates Infosys development centre in GIFT City, Gandhinagar
* GST authority closes proceedings against Infosys over INR 324 bln tax notice

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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