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Informist, Friday, Mar. 20, 2026

MUMBAI – Shares of information technology companies are seen moving in a range next week given the weakness in the market. Some fears relating to software-as-a-service companies being hurt by artificial intelligence tools have eased, analysts said. However, they said that until there are positive comments on new AI contracts cropping up in upcoming quarters, generative AI will likely remain a key overhang on investor sentiment. Accenture's positive guidance and the rupee's persistent depreciation will likely add fuel to shares of these companies.

AI-related bookings and partnerships have now taken centre-stage in business planning for domestic IT companies, analysts said. "The jitters seen in February have passed, and new AI-centred pacts, combined with comfortable valuations will likely provide a good entry-point for investors," Rishubh Vasa, research analyst at Indsec Securities & Finance, said. Dependence on domestic players to make enterprises AI-ready, and the popular rhetoric of cost-cutting will likely add to AI-related contracts in the IT space, the analyst added.

In the medium-to-long term, the AI services field is likely to be crowded by a host of IT majors vying for contracts, Vasa said. "Previously, we were baking in a 300 basis point margin expansion in the upcoming years from AI services for IT majors, but now we see around 100 basis points expansion," he said. This downward revision in projection is attributed to two key factors--high competition for providing AI services and AI enhancements leading to lower costs, which will have to be passed on to the end-consumer, he said.

High prices of crude oil and the resulting pressure on the rupee will likely provide tailwinds for foreign exchange-related benefits, some analysts added. On Friday, the rupee closed at 93.71 per dollar, a historic low against the greenback. There are other positive global cues for this sector, including Accenture raising the lower band of its sales growth guidance for 2025–26 (Sept-Aug). The global technology firm now expects full-year sales growth at 3–5% in local currency terms compared with the 2–5% guided after the November quarter. Accenture's earnings are a key bellwether for IT companies as it provides cues on new contract appetite for US IT firms.

The Nifty IT index has taken a pause around the support zone of 28000–28500, said Vipin Kumaar, senior technical and derivatives analyst at Globe Capital Markets. The analyst added that while the overall structure for the index remains negative on technical charts, the probability of a sideways move is higher near these support levels. He sees the sectoral index facing resistance around the 30600–31300 levels. This week, the Nifty IT index ended 0.4% higher at 29199.60 points. Tech Mahindra and LTIMindtree were the top gainers among the Nifty IT constituents, rising 4% and 2%, respectively. Meanwhile, Mphasis and Wipro were the worst hit, declining over 1% and 3%, respectively.

TOP HEADLINES

* TCS, Swissport International extend partnership on AI-led services by 5 yrs
* Accenture raises lower band of full-year sales growth guidance to 3% from 2%
* Wipro launches GIFT City hub to accelerate AI-powered BFSI transformation
* Tata Elxsi, Terumo Corp inaugurate offshore development centre
* TCS, ABB sign MoU to expand partnership in IT, engineering, AI
* Infosys Singapore arm to incorporate wholly-owned subsidiary in Australia
* HCL Tech a launch partner for Amazon Web Services' European Sovereign Cloud
* TCS partners with Pearson to help build future-ready workforces with AI
* LTIMindtree says corporate affairs min OKs renaming co as LTM
* Hexaware Tech launches AI-driven enterprise platform Agentverse
* Wipro to collaborate with Harness for AI-native software delivery solutions
* Tech Mahindra arm to buy 20% stake in Tech Mahindra Arabia for INR 2.06 bln
* Jio Payments Bank launches UPI-based cash withdrawal services
* Persistent Systems, Nvidia partner to build AI solutions for drug discovery
* TCS launches Rapid Outcome AI platform powered by NVIDIA
* L&T Tech launches NVIDIA-powered AI platform for respiratory diagnostics
* CCI head says preparing plan to curb anti-competitive practices in AI space
* Intellect Design to form 50:50 joint venture with UK's Fintel PLC
* NDTV Profit: PhonePe puts IPO plan on hold because of geopolitical headwinds
* LTIMindtree partners with IIT Kharagpur to strengthen staff's AI skills
* Sonata Software appoints Balaji Kumar as chief human resource officer
* Inventurus Knowledge to invest $40 mln more in US subsidiary
 

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 Eshitva Prakash

Edited by Ashish Shirke

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