IT Stocks Outlook
To stay lower next wk; US-India trade talks to lend cues
This story was originally published at 21:44 IST on 7 November 2025
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MUMBAI – Information technology stocks are expected to continue fall in the upcoming week, with no major positive triggers in the near term. The trend remains weak for the Nifty IT index, which had remained in the consolidation phase in the past weeks, a technical analyst at a domestic brokerage said. Next week, investors will focus on updates on US-India trade talks and tariff-related developments.
Thursday, US President Donald Trump said that the trade talks with India were "going good" and also hinted at a possible visit to the country next year. The US has imposed a 50% tariffs on Indian imports to the country, which includes an additional tariff of 25% for buying Russian oil and arms. Though the domestic IT sector is not directly impacted by the US tariffs, reduced technology spending from US clients facing the cost of tariffs would impact the sector which relies heavily on the US market.
Though the September quarter earnings of domestic IT companies came out slightly better than anticipated with strong deal wins, concern about cautious client spending persists amid global macroeconomic uncertainty. Some analysts, however, remain positive on the sector in the long run. An improvement in demand and growth in the sector is expected from next year, Yogesh Aggarwal, head of research India at HSBC, said in a report Thursday, adding that management commentary post September quarter earnings on deal pipelines and demand was encouraging.
The valuations of these stocks remain "quite reasonable," said Rishubh Vasa, a research analyst covering the sector at Indsec Securities. "One should start accumulating (IT stocks) at this point...should start rewarding in 1–2 years," Vasa said.
Over this week, the Nifty IT index fell 1.7% compared with the near 1.0% fall in both the Nifty 50 and the Sensex. All 10 constituents of the sectoral index fell over the week, with large-cap player Tech Mahindra being the worst laggard. Next week, the sectoral index is seen finding resistance at 35548 levels and support at 34800, the technical analyst said.
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* Zensar Tech Jul-Sept consol PAT flat on qtr at INR 1.82 bln, revenue up 3%
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 | 1740.20 | (-)2.10 | 1772.10 | 1699.10 |
| HCL TECHNOLOGIES LTD | 1512.40 | (-)1.90 | 1535.50 | 1478.90 |
| INFOSYS LTD | 1476.80 | (-)0.40 | 1500.70 | 1437.10 |
| L&T TECHNOLOGY SERVICES LTD | 4089.20 | (-)0.70 | 4167.00 | 3983.20 |
| LTIMINDTREE LTD | 5567.50 | (-)2.10 | 5700.80 | 5441.80 |
| MPHASIS LTD | 2736.00 | (-)1.00 | 2794.90 | 2675.90 |
| PERSISTENT SYSTEMS LTD | 5781.00 | (-)2.30 | 5917.00 | 5631.00 |
| TATA CONSULTANCY SERVICES LTD | 2991.80 | (-)2.20 | 3028.90 | 2941.90 |
| TECH MAHINDRA LTD | 1386.70 | (-)2.70 | 1418.60 | 1369.00 |
| WIPRO LTD | 236.49 | (-)1.70 | 240.50 | 234.00 |
| NIFTY IT | 35117.65 | (-)1.70 | 35581.00 | 34500.90 |
| NIFTY 50 | 25492.30 | (-)0.90 | 25686.80 | 25221.20 |
| BSE SENSEX | 83216.28 | (-)0.90 | 83811.60 | 82373.30 |
End
Reported by Arya S. Biju
Edited by Akul Nishant Akhoury
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