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Informist, Friday, Jan. 16, 2026

MUMBAI – Information technology stocks are expected to continue trading with a positive bias in the upcoming week with stock-specific movements anticipated based on December quarter earnings and commentaries by managements. The Nifty IT index is seen rising in the coming week, after the sharp jump it saw this week, which came after three weeks of weekly declines, technical analysts said. 

Friday, the Nifty IT index closed over 3% higher at 39086.65 points, with all index constituents ending the session in the green, up 0.6–5.7%. Over the week, the sectoral index rose around 3%, outpacing the benchmark Nifty 50 and Sensex which remained largely flat on a weekly basis. Next week, the Nifty IT index is seen finding support at 38200-37600 levels and resistances at 39600-40200 spot levels, Vipin Kumaar, assistant vice president – technical and derivatives, Globe Capital Market, said.

Most sectoral stocks rose Friday after Infosys raised its revenue guidance for 2025-26 (Apr-Mar) to 3.0–3.5% from 2.0–3.0% earlier, even as the company reported a weaker-than-expected quarterly profit. Another sectoral player, HCL Technologies cut the upper end of its sales growth guidance for FY26 to 4.5% from 5.0% earlier while raising the lower end of the guidance to 4% from 3% earlier. Friday, Wipro has guided for a sequential growth of 0% to 2.0% in constant currency terms from its IT services business for the March quarter. This was better than the (-)0.5% to 1.5% growth in revenue in constant currency terms it guided for the December quarter. 

This week, large-cap IT companies such as Infosys, Tata Consultancy Services, HCL Technologies, Wipro, and Tech Mahindra announced their December quarter earnings. Other sectoral players such as Tata Technologies and L&T Technology Services also announced their December quarter earnings this week. 

Most of the domestic IT companies that have announced their quarterly results so far, have reported an increase in provisions for employee benefits prompted by the new labour code that came into effect on Nov. 21. Under this new law, basic pay must account for at least 50% of an employee's total cost to the company. As a result, payouts tied to statutory contributions such as gratuity and leave-related benefits are set to increase for companies.

Earlier this week, global brokerage Jefferies noted that the impact of the new labour codes is not one time on profit, but recurring in nature as employee cost will rise sustainably, media reports said citing the brokerage. The changes may hit company profits by as much as 10–20% in the December quarter, while recurring employee expenses could rise by up to 5%, the brokerage said. According to Jefferies, a 2% increase in costs of Indian employees for the industry may hit earnings estimates for FY27 by 2–4%. The impact of new labour codes is expected to add to the sector's existing challenges, including the risk of higher onsite wages due to the changes in the H-1B visa allocation norms, the brokerage said. 

Next week, sectoral players such as LTIMintree, Persistent Systems, Coforge, Mphasis, and Cyient will announce their December quarter earnings. 

TOP HEADLINES

* LTIMindtree gets INR 30-bln govt order for AI-powered tax analytics platform
* Zen Technologies gets orders worth INR 4 bln from Ministry of Defence
* Earnings Review: One-time cost, fall in sales drag L&T Tech Q3 consol PAT dn
* Earnings Outlook: Tata Tech Q3 revenue seen up, wage hike to weigh on PAT
* Analyst Concall: Infosys bullish on growth in select segments in FY27
* Earnings Outlook: Q3 deal ramp-ups to help Wipro post first PAT growth FY26
* Healthy headcount signals co's confidence in market sentiment, Infosys says
* Earnings Review: Infosys Q3 consol PAT falls on one-time cost; misses view
* Infosys ups FY26 revenue growth guidance to 3.0-3.5%; retains view on margin
* Latent View accepts CFO Rajan Bala Venkatesan's withdrawal of resignation
* Earnings Outlook: Tech Mahindra seen reporting double-digit PAT growth Q3
* TCS partners with US-based AMD to boost enterprise AI adoption
* Analyst Concall: Tata Elxsi eyes stronger growth across verticals in FY27
* Need to improve awareness of pension, insurance products, says RBI Sankar
* Earnings Review: New labour codes drag Tata Elxsi's Q3 PAT; sales up 4% QoQ
* Earnings Outlook: Traction in sustainability ops to drive L&T Tech Q3 sales
* HCL Tech shifts dividend record date to Sat due to trading holiday on Thu
* Chasing new areas of client spending, see strong growth momentum - HCL Tech
* Analyst Concall: AI-led legacy modernisation key opportunity, says HCL Tech
* Earnings Review: One-time costs lead to fall in TCS Oct-Dec consol PAT
* Earnings Review:HCL Tech Q3 PAT falls 4% QoQ; misses view on one-time impact
* HCL Tech in partnership with The Magnum Ice Cream Co to manage IT infra
* HCL Tech cuts upper end of FY26 sales growth guidance to 4.5% from 5.0%
* Earnings Review: HCL Tech Q3 PAT falls 4% QoQ, misses View on one-time hit
* Earnings Outlook: Tata Elxsi Q3 PAT growth likely to be capped by wage hikes
* Earnings Outlook: Wage hikes, furloughs likely to weigh on TCS' Q3 earnings
* Earnings Outlook: HCL Tech seen reporting double digit PAT growth in Oct-Dec
* Union Bk onboarded Accenture in Dec to aid generative AI adoption - official
 

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

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