IT Stocks Outlook
Seen consolidating near term with no major positive cues
This story was originally published at 22:52 IST on 31 October 2025
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MUMBAI – Information technology stocks are expected to consolidate in the near term, with no major postive triggers seen in the near term to drive a meaningful recovery, according to analysts covering the sector. The muted growth visibility, despite a slightly better earnings and strong deal wins in the September quarter, is expected to cap significant upside for these stocks.
Over this week, the Nifty IT index fell nearly 1% as against the 0.3% fall in both Nifty 50 and Sensex. Barring Coforge, HCL Technologies, LTIMindtree and Persistent Systems, all other constituents of the sectoral index fell 0.2-2.8% on a weekly basis. However, in October, the sectoral index gained over 6% against the 4.5% and 4.6% rise in the Nifty 50 and Sensex respectively.
The US Federal Reserve Wednesday slashed its benchmark federal funds rate by 25 basis points, as expected, to 3.75-4.00%. However, the market sentiment was tempered as the central bank's chairman Jerome Powell indicated that another interest rate cut in December was not guaranteed. With domestic IT companies deriving a major chunk of their revenue from the US, developments related to the US economy will have an impact on the discretionary spending from the region in Indian IT companies.
Mid-cap technology major, Mphasis late Wednesday reported a slightly better-than-expected revenue for the September quarter, led by a ramp-up in large deals won in the insurance segment and strong conversion in the technology, media, and telecommunication vertical. Mphasis reported a consolidated revenue of INR 39 billion for the reporting quarter, up 4.5% on quarter and slightly better than analysts' expectations of INR 38.77 billion. Its consolidated net profit rose over 6% on quarter to INR 4.69 billion, largely in line with expectations.
TOP HEADLINES
* Intellect Design Jul-Sept consol PAT rises 8.2% QoQ to INR 1.02 billion
* Analyst Concall: Mphasis eyes sharp rise in logistics ops margin from Q3
* Earnings Review: Mphasis Q2 sales beat view on growth in insurance vertical
* Inventurus Knowledge Q2 consol PAT rises over 19% QoQ to INR 1.81 billion
* TCS signs 5-year pact to automate Tata Motors' ESG reporting
* Earnings Review: ITC top line down in Q2, first YoY fall in six quarters
* LTIMindtree launches agentic AI IT services management platform BlueVerse
* Persistent Systems launches experience transformation studio in Pune
* Sagility Jul-Sept consol PAT rises 69% QoQ to INR 2.51 billion
* Wipro partners with HanesBrand for AI-led IT, cybersecurity transformation
* Infosys, Workday collaborate with UK's Metro Bank to transform finance ops
* HCL Tech, Talents of Endearment to launch AI-powered learning framework
* Happiest Minds Jul-Sep consol PAT falls over 5% QoQ to INR 540.2 million
* Newgen Software Jul-Sept consol net profit up 64% QoQ to INR 817.4 mln
* Hexaware Tech denies US co's allegations in patent infringement lawsuit
* LTIMindtree gets $100 mln multi-year deal from US chemical manufacturer
* Mphasis launches AI platform Mphasis NeoIP for enterprise transformation
* TCS clarifies Marks and Spencers' contract snub unrelated to cyberattack
* Zen Tech Apr-Jun consol net profit, sales fall on year but rise sequentially
* Earnings Outlook: Banking, tech ops to drive Mphasis' Q2 PAT, sales
* eClerx Services to buy back shares worth up to INR 3 bln at INR 4,500/share
* Latent View Jul-Sept consol PAT falls nearly 13% QoQ to around INR 444 mln
* eClerx Services Jul-Sept consol PAT rises almost 30% QoQ to INR 1.83 billion
Following are the resistance and support levels for key IT 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 LTD | 1778.10 | 1.00 | 1826.80 | 1750.00 |
| HCL TECHNOLOGIES LTD | 1541.50 | 1.20 | 1566.40 | 1525.20 |
| INFOSYS LTD | 1482.30 | (-)2.80 | 1503.10 | 1470.30 |
| L&T TECHNOLOGY SERVICES LTD | 4120.10 | (-)1.30 | 4149.10 | 4077.50 |
| LTIMINDTREE LTD | 5684.50 | 2.50 | 5793.20 | 5598.20 |
| MPHASIS LTD | 2764.40 | (-)1.90 | 3035.10 | 2616.70 |
| PERSISTENT SYSTEMS LTD | 5916.60 | 1.60 | 6008.80 | 5829.00 |
| TATA CONSULTANCY SERVICES LTD | 3058.00 | (-)0.20 | 3092.50 | 3007.90 |
| TECH MAHINDRA LTD | 1424.40 | (-)2.00 | 1444.60 | 1410.20 |
| WIPRO LTD | 240.67 | (-)1.00 | 244.10 | 238.80 |
| NIFTY IT | 35712.35 | (-)0.80 | 36183.90 | 35445.30 |
| NIFTY 50 | 25722.10 | (-)0.30 | 26038.20 | 25553.10 |
| BSE SENSEX | 83938.71 | (-)0.30 | 84992.90 | 83378.60 |
End
Reported by Arya S. Biju
Edited by Akul Nishant Akhoury
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