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Informist, Friday, Dec 19, 2025

MUMBAI - Shares of domestic information technology companies are likely to remain in a tight range next week, analysts said. The medium-term outlook for the sector, however, is positive due to the decline in earnings downgrades and expectations of demand recovery, two analysts tracking the sector said. Investors will continue to closely watch developments in trade talks between India and the US and the Indian rupee's movement against the dollar, which recovered after hitting new all-time lows this week.

A fall in the rupee is positive for the Indian IT sector, as about half of the revenue is earned in US dollars. The rupee, which fell to a record low of 91.08 a dollar on Tuesday, closed at 89.27 Friday, the highest closing level since Nov. 25.

A key trigger for the sector was Accenture's earnings for the November quarter on Thursday, with US-based IT giant retaining its 2-5% revenue growth guidance in local currency for the year. Investors closely track Accenture's earnings to gauge the likely performance of Indian players as well. Several broking firms said the US entity's earnings were strong and that demand remained stable amid US tariff pressures. Although there are no major changes in clients' discretionary spend, Accenture said customers continue to prioritise large-scale transformational programs that generate revenue more gradually. 

"Managed services revenue growth (of Accenture) and deal bookings bode well for Indian peers," brokerage Prabhudas Lilladher said in its report. Its plan to hire more employees in the financial year ending August is an indication of improving and stabilising macro environment, the broking firm said. 

Nirmal Bang Institutional Equities said Indian IT services companies should focus on scaling up artificial intelligence capabilities, securing large deals, and improving operational efficiencies to mitigate margin pressures in a competitive environment. "Accenture's growth in AI and cloud reinforces the view that Indian IT firms will need to accelerate their AI-driven transformation offerings to remain competitive," the broking firm said. 

The Nifty IT index closed 0.2% higher Friday at 38691.60 points, ending in the green for the third straight session. The immediate resistance for the index is seen at 39000-39200 levels and support at 38500-38300 points, a technical analyst at a domestic broking firm said. 

TOP HEADLINES
* HCL Technologies acquires Hewlett Packard's telecom solutions business
* Analyst Concall: Accenture sees Dec-Feb sales in $17.35 bln-$18.00 bln range
* Accenture Nov quarter revenue up 6%, retains full-yr revenue growth guidance
* TCS expands partnership with Aviva UK, co's arm to manage 1 mln more policies
* TCS clocks $1.5 bln annual revenue from AI services, CEO Krithivasan says
* Cyient board OKs purchase of 65% stake in US semiconductor firm for $93 mln
* TCS resolute on 26-28% long-term margin aim despite heavy AI-led investments
* Govt extends monitoring of laptops, server imports till Dec 2026
* HCL Tech inks contract with Netherlands-based ASN Bank to provide svcs
* PRESS: TCS gets contract worth $1 bln from Telefonica UK
* Infosys, MIT study shows psychological safety impacts employees' AI adoption
* PM Modi calls for inter-operable fast payment system between India, Jordan
* Persistent Systems, DigitalOcean in pact to advance accessible, scalable AI
* Coforge launches AI-enabled platform to help clients with fragmented data
* HCL Tech partners with Horse Powertain for digital services in Sweden, China
* WhatsApp must give users choice on sharing data with Meta for advt - NCLAT
* Tech Mahindra's 2 arms incorporate step-down subsidiaries in Zambia, India
* Hexaware Tech files motion to dismiss lawsuit by US-based Natsoft Corp.
* Wipro in pact with Google Cloud to deploy Gemini AI platform

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:

End

Reported by Anjana Therese Antony
Edited by Saji George Titus

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