IT Stocks Outlook
Likely to continue moving in small range next week
This story was originally published at 19:55 IST on 27 June 2025
Register to read our real-time news.Informist, Friday, Jun 27, 2025
MUMBAI – Shares of Indian information technology companies are likely to continue to move in a tight range next week in the absence of major triggers for the sector. With the June quarter earnings season scheduled to begin next month, investors will closely analyse expectations about these companies' financial growth and comments about the outlook for the financial year 2025-26 (Apr-Mar).
Worries persist about the impact of US tariffs on the financial performance of Indian IT firms as they earn a major chunk of their revenue from clients in the world's largest economy. Macroeconomic uncertainties have increased in 2025 over last year and the outlook for business growth in the midst of US tariffs and related policies remains hazy. US Federal Reserve Chair Jerome Powell recently said the central bank is in no hurry to reduce key interest rates due to the heightened macroeconomic uncertainty and would prefer to wait for major economic data to determine possible risks to economic growth and inflation.
Slight caution also echoed in the management comments of US-based IT giant Accenture, which released its May quarter results last week. The US company raised its revenue growth guidance for 2024-25 (Sept-Aug) to 6-7% from 5-7%. Some broking firms called this "unexciting". For the reporting quarter, the company generated a revenue of $17.7 billion, up 8% on year in US dollar terms and 7% in local currency terms. Accenture's results are widely tracked to identify possible earnings trends for domestic IT companies.
Following Accenture's results, Nomura Global Markets Research said there has been no noticeable change in the macroeconomic environment. Revenue growth momentum continues to be strong in financial services, it said. "We expect the growth momentum in the financial services vertical to continue in the near term for Indian IT services companies," the broking firm said. The financial services segment is a key revenue generator for most IT companies. Nomura also said there has been no meaningful deterioration in the demand environment since the US administration imposed a 90-day pause on its reciprocal tariffs on Apr. 9.
Investors will continue to monitor developments related to the tariffs next week, with the US expected to extend the pause that is set to expire Jul. 9. "Perhaps it (the deadline) could be extended, but that's a decision for the president to make," White House Spokesperson Karoline Leavitt said Thursday. Meanwhile, there is chatter that the trade talks between India and the US have come to a halt. The talks hit a roadbock over disagreements on import duties for automotive components, steel, and farm goods, Reuters reported, quoting Indian officials with direct knowledge of the matter.
This week, shares of Mphasis rose the most, up 4%, while those of LTIMindtree and Persistent Systems fell 2%. Friday, the Nifty IT was among the few sectoral indices to end in the red, closing 0.4% lower at 38822.95 points, down a second session. The index fell this week after closing higher in the last two weeks.
TOP HEADLINES
* Sagility India board approves change in company name to Sagility
* IPO Alert: Pine Labs files DRHP for INR-26-bln fresh issue, 148-mln-shr OFS
* HCL Tech expands pact with Salesforce for adoption of AI with new services
* Intellect Design launches open business impact AI platform in GIFT City
* L&T Tech gets over $50-mln order from leading energy co for digital services
* Raghavendra Jha resigns as CFO of Mastek, Jul 11 to be last working day
* Infosys in pact with US-based Zoetis to enhance IT ops, digital capabilities
* Cyient, Vodafone unveil AI-based network management solution
* HCLTech partners with US-based AMD for AI, digital, cloud solutions
* IPO Alert: GNG Electronics gets SEBI approval for fresh issue, OFS
* Zen Technologies to acquire majority stake in TISA Aerospace
* Wipro increases payout to 70% of net income in 3 years from 45-50% earlier
* Crisil Ratings ups long-term rtg on Netweb Tech's bk facilities to A from A-
* Accenture ups 2024-25 revenue guidance to 6-7%, expects positive FX impact
* TCS sets up 2 automotive delivery centres, 1 engineering centre in Europe
Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Coforge | 1,899.50 | 3.70 | 1,977.80 | 1,853.80 |
| HCL Technologies | 1,723.30 | (-)1.00 | 1,770.60 | 1,687.20 |
| Infosys | 1,608.00 | (-)0.90 | 1,640.50 | 1,586.10 |
| L&T Technology Services | 4,385.60 | 0.10 | 4,487.80 | 4,228.00 |
| LTIMindtree | 5,293.00 | (-)1.60 | 5,477.70 | 5,187.70 |
| Mphasis | 2,800.00 | 3.90 | 2,916.00 | 2,734.00 |
| Persistent Systems | 6,010.50 | (-)1.60 | 6,191.20 | 5,894.20 |
| Tata Consultancy Services | 3,441.10 | 0.20 | 3,481.60 | 3,410.80 |
| Tech Mahindra | 1,674.40 | (-)1.30 | 1,718.80 | 1,640.40 |
| Wipro | 265.05 | (-)0.60 | 272.00 | 261.00 |
| Nifty IT | 38822.95 | (-)0.40 | 39613.20 | 38312.00 |
| Nifty 50 | 25637.80 | 2.10 | 25735.80 | 25474.50 |
| BSE Sensex | 84058.90 | 2.00 | 84375.20 | 83487.30 |
End
Reported by Anjana Therese Antony
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. 2024. All rights reserved.
To read more please subscribe
Share this Story:
