IT Stocks Outlook
US tariff-related news to provide cues for sector next wk
This story was originally published at 18:14 IST on 5 September 2025
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MUMBAI – Developments relating to US tariffs are likely to provide cues for Indian information technology stocks next week in the absence of domestic cues. However, experts do not see a major correction in the sector as the demand environment is unlikely to deteriorate and earnings growth is expected to improve by the end of the current financial year. There is scope for IT demand to pick up in the near-to-medium term, analysts said.
"From a large-cap IT perspective, we still see reasonable upside potential (in IT stocks)," George P. Thomas, fund manager at Quantum Asset Management Co., said this week. When it comes to mid-cap and small-cap valuations, the broader cohort is still expensive, but there are some stocks available at reasonable valuations, he said. While mid-cap IT companies are likely to continue to post better earnings growth than their large-cap peers, experts favour large-cap stocks due to their reasonable valuations following the recent correction, analysts said.
Friday, India's top 13 IT stocks closed lower amid rumours that the US plans to impose tariffs on Indian IT services. Some reports and social media handles, which had cited Bloomberg and Reuters as sources of this information, later clarified that these news agencies had not reported about likely US tariff on the IT sector. Bloomberg said it did not put out any such report, CNBC-TV18 reported.
Among large-cap IT stocks, Infosys, Tech Mahindra, Tata Consultancy Services, and HCL Technologies were the worst hit and closed 1-2% lower Friday. Mid-cap stock such as Coforge, Mphasis, and Persistent Systems ended 2-3% lower. The Nifty IT was the worst-hit sectoral index and closed 1.4% lower at 34635.85 points. Currently, the Nifty IT index is down 20% from the closing level in December, while the US tech-heavy NASDAQ Composite index is up more than 12%.
TOP HEADLINES
* Odisha govt selects TCS to build AI-enabled financial management system
* Tata Elxsi partners with Evergent to launch unified digital hub
* Redington, CrowdStrike in pact to provide AI cybersecurity platform in India
* IPO Alert: Mouri Tech gets nod from SEBI for INR 15-bln public offer
* Netweb Tech gets INR 17.34-bln order to supply Nvidia platform-based servers
* IPO Alert: Urban Company sets price band at INR 98-INR 103
* L&T Tech partners with SiMa.ai to develop AI-based solutions for industries
* TCS signs 7-yr pact worth 550 mln euros with Scandinavian insurance co Tryg
* Infosys, Japan-based One Bright Kobe in pact for digital innovation
* TCS completes Scottish Widows' life, pension heritage migration to TCS BaNCS
Following are the resistance and support levels for the IT 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 | 1,658.30 | (-)3.80 | 1,740.50 | 1,598.90 |
| HCL Technologies | 1,419.00 | (-)2.50 | 1,474.20 | 1,375.20 |
| Infosys | 1,444.60 | (-)1.70 | 1,489.80 | 1,410.40 |
| L&T Technology Services | 4,120.60 | (-)2.40 | 4,244.20 | 4,028.20 |
| LTIMindtree | 5,195.50 | 1.20 | 5,372.50 | 4,980.50 |
| Mphasis | 2,797.40 | 0.30 | 2,924.70 | 2,697.10 |
| Persistent Systems | 5,132.00 | (-)3.30 | 5,427.30 | 4,942.30 |
| Tata Consultancy Services | 3,048.30 | (-)1.20 | 3,134.90 | 2,985.30 |
| Tech Mahindra | 1,477.90 | (-)0.20 | 1,527.80 | 1,437.20 |
| Wipro | 243.67 | (-)2.30 | 250.10 | 238.00 |
| Nifty IT | 34635.85 | (-)1.60 | 35758.40 | 33782.20 |
| Nifty 50 | 24741.00 | 1.30 | 24942.40 | 24520.90 |
| BSE Sensex | 80710.76 | 1.10 | 81404.90 | 79974.10 |
End
Reported by Anjana Therese Antony
Edited by Rajeev Pai
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