More Stories

Informist, Friday, Dec 26, 2025

MUMBAI – Shares of information technology companies are likely to remain in a tight range next week, with near-term prospects for the sector staying bullish, driven by expectations of a stable demand environment and strong order wins. While uncertainties about US tariffs persist, analysts tracking the sector believe the demand will not deteriorate from current levels and that the worst is behind for domestic IT players. With the December quarter earnings season scheduled to kick off in a couple of weeks, investors will closely watch for management comments on demand, clients' discretionary spending, order wins, headcount additions, artificial intelligence, and the business outlook.

"We expect 0.3-2.2% QoQ CC (sequential constant currency) growth in Q3FY26 (Oct-Dec) from top 4 IT companies, driven by resilient performance in BFSI and ramp-up of large deal wins, partially offset by headwinds from furloughs," ICICI Securities said in a report. IT companies are proactively embedding AI-led productivity in their solutions, leading to a deflationary impact on revenue growth, it said. The broking firm said it remains cautious about the sector and prefers Tata Consultancy Services among large-cap companies for its superior operating metrics and valuation appeal. TCS is scheduled to release its December quarter earnings on Jan. 12 and is also likely to consider a third interim dividend for the current financial year. 

There are no major concerns regarding H-1B visas, as Indian IT companies have been reducing their dependence on them over the last few years. This week, the US Department of Homeland Security replaced the random lottery method for H-1B visas with a weighted selection process, effective Feb. 27, that gives greater priority to higher-skilled and higher-paid workers and will help protect US employees. A weighted model could inadvertently disadvantage small and medium-sized enterprises, startups, research institutions, and university-linked employers that operate with moderate but market-appropriate wage structures, the National Association of Software and Service Companies said, as per media reports. The development follows the H-1B visa fee hike to $100,000 for new applicants announced a few months ago. 

The Nifty IT index closed lower for the third consecutive session Friday, with all 10 constituents in the red. Shares of Coforge fell the most this week, down over 9% and extended its losing run for the third week in a row. On Friday, the company said its board has approved the acquisition of the US-based artificial intelligence software engineering firm Encora from Advent International, Warburg Pincus, and other minority shareholders for an equity value of $1.89 billion. This acquisition is expected to scale Coforge's hi-tech and healthcare verticals, expand its nearshore delivery capabilities in Latin America, and increase its client footprint in the western and midwestern regions of the US. 

TOP HEADLINES
* Coforge launches EvolveOps.AI management platform for IT cos
* ICICI Sec sees top 4 IT cos' Q3 revenue up 0.3-2.2% QoQ; BFSI ops to lead
* Infosys McCamish pays $30,000 to settle US case related to 2023 data breach
* HCL Tech joins Microsoft Discovery platform to accelerate research innovation
* IPO Alert: ESDS Software gets SEBI nod for public offer of up to INR 6 bln
* Coforge board to meet Fri to mull raising funds via equity, other modes
* HCL Tech's software business division intends to acquire Jaspersoft
* HCL Tech software business division to buy Belgian early-stage AI startup
* NCLT approves Amazon Transportation's merger into Amazon Seller Services
* Tech Mahindra asked to pay up INR 13 bln in alleged non-remitted EPF arrears

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

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
Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.