More Stories

Informist, Friday, Nov. 28, 2025

MUMBAI – Technical analysts remain bullish on domestic information technology stocks, with the Nifty IT expected to continue its upward journey in the coming week, extending gains for the fourth straight week. While positive global cues, including rising expectations of an interest rate cut by the US Federal Reserve in the December meeting, lend support to these stocks, persisting concerns over the growth outlook and uncertainty over the recovery of discretionary spending cap significant upside. 

With most IT stocks breaking their four-year, five-year consolidation range this week, they are now expected to rise further, a technical analyst at a domestic brokerage said. Over this week, the Nifty IT index gained over 1%, outpacing the 0.5% and 0.6% rise in the benchmark Nifty 50 and Sensex. The sectoral index gained nearly 5% in November, extending gains for the second straight month after falling in the preceding three months. 

Analysts remain divided on the sector's growth outlook despite a slightly better September quarter earnings. IT sector's growth outlook remains uncertain, which could continue to keep stocks under pressure, Global brokerage Jefferies was cited as saying in a moneycontrol report. The brokerage expects the concerns over growth and artificial intelligence-related uncertainty to cap multiples, even if cheaper valuations offer better entry points to investors, the report said. 

Similarly, Fitch Ratings expects revenue of Indian IT companies to grow in the mid-single-digits in 2026, it said in a report Friday. It expects the slower growth in the US and the Eurozone, tariff-related cost pressures, trade frictions, and economic uncertainty to weigh on demand and keep discretionary IT expenditure tight. However, robust pipelines, large deals in cost optimisation, vendor consolidation, legacy modernisation, and artificial intelligence-led efficiency, along with expanding AI ecosystems and infrastructure investments, are expected to support steady bookings and resilient margins for these companies, the ratings agency said. 

In contrast, Motilal Oswal Financial Services Tuesday upgraded Indian IT sector to mild overweight from underweight, driven by expectations that the global technology spending cycle is close to turning in favour of services. The upgrade is based on early signals that the multi-year artificial intelligence capital expenditure boom may soon rotate into services spending. The sector's risk-reward is favourable, with "most of the negative news is already priced in," a technology analyst at the brokerage was quoted as saying in a CNBC TV18 report. 

Similarly, Nomura said it expects large-cap information technology companies under its coverage to see a marginal improvement in their revenue growth in dollar terms to 4.7% in 2026-27 (Apr-Mar) compared to the 3.5% growth estimated for FY26. While the brokerage expects mid-cap technology companies to continue growing faster than their large-cap peers, their revenue growth is expected to slow down to 12.7% in FY27 from 13.2% growth expected in FY26, the brokerage said in a note on Thursday. Faster interest rate cutting cycle by the US Federal Reserve and easing macroeconomic conditions due to tariff issues getting settled are expected to support growth in the sector, Nomura said. 

TOP HEADLINES

* IPO Alert: Meesho sets price band at INR 105-INR 111 per shr, cuts OFS size
* Newgen Software arm gets INR-139.6-mln order from a Malaysian Bank
* Intellect Design launches AI lending solution PF Credit in Philippines
* Wipro, Odido Netherlands in multi-yr engagement for IT infra transformation
* Tata Elxsi, Druid Software in partnership to expand 5G offerings
* TCS, SAP signs 5-year deal for cloud, IT infra transformation
* Happiest Minds launches AI platform for enterprise support
* Cyient in pact with CNH Industrial for autonomous vehicle solutions
* Swiggy denies media report on market share loss, terms it unreliable
* IPO Alert:Excelsoft Technologies ends 5% higher after listing at 12% premium
* Wipro, IISC join hands for innovation across frontier technologies
* Online money gaming linked to terror financing, tax evasion, govt tells SC
* HCL Tech extends collaboration with SAP to advance physical AI solutions
* TCS extends pact with retailer ALDI SOUTH for AI-led digital transformation
* IPO Alert:Excelsoft Technologies to list Wed, issue price set at INR 120/shr
* IPO Alert: Amagi Media gets SEBI's approval for fresh issue, OFS
* IPO Alert: Fractal Analytics gets SEBI nod for up to INR-49-bln issue
* HCL Tech, Amazon Web Services partner for AI innovation in fincl svcs sector
* SC rejects higher TDS on Mphasis, Wipro, OKs double tax avoidance pact order
* HCL Tech, MumbaiHacks partner to accelerate AI innovation, talent ecosystem
* Integrated Core Strategies buys 1.6% stake in Tata Elxsi for INR 3.88 bln
* Hexaware Tech promoter, holding co pledge full stake for INR-111-bln debt
* Coforge launches integrated engineering, delivery platform Forge-X
* US appeals court issues ruling against TCS in $194-mln damages to DXC Tech
* IPO Alert: Excelsoft Technologies issue subscribed 43 times as of final day
* IPO Alert: Shares of Capillary Technologies end over 5% higher on debut day

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:

End

Reported by Arya S. Biju

Edited by Deepshikha Bhardwaj

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/+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.