IT Stocks Outlook
In range; rupee fall to aid, near-term AI headwinds seen
This story was originally published at 18:37 IST on 27 March 2026
Register to read our real-time news.Informist, Friday, Mar. 27, 2026
MUMBAI – Shares of information technology companies are expected to remain range-bound next week, reflecting mixed bets about when the war in West Asia will end. Higher crude oil prices have added inflationary pressure, while a weaker domestic currency is positive for this outsourcing-dependent sector. However, concerns about higher interest rates worldwide, which will lead to lower discretionary spending among international clients, and productivity gains from artificial intelligence tools hitting the top lines of these companies in the near term limit upside, brokerages said.
However, some analysts said IT company stocks have emerged as defensive bets on technical charts in a market spooked by the possibility that the US-Iran war could continue beyond next week. Geopolitical uncertainty may delay discretionary spending and new projects, while raising operational concerns regarding infrastructure resilience, travel, and employee safety, HDFC Securities said. To assess the impact of the war in West Asia on domestic IT players, the brokerage is closely monitoring commentary from IT majors that derive around 6–17% of their revenue from the energy and utilities sector. However, HDFC Securities sees the impact on existing projects remaining contained, as most delivery operations are anchored offshore in India and mission-critical programs typically persist despite regional volatility.
In the near term, the sector may experience a phase in which productivity gains from artificial intelligence reduce revenue growth without an equivalent increase in new demand for AI implementation and services, ICICI Securities said. While companies are repositioning themselves as AI-led transformation partners, the market remains cautious about the risk of near-term revenue cannibalisation before new AI opportunities scale. Thus, this creates a transient phase in which efficiency-led revenue compression precedes the scaling of new AI opportunities, making the initial phase of generational-AI adoption deflationary and contributing to the current correction in sector valuations, the brokerage said.
A partnership model between AI and IT players is likely. Rather than replacing IT services companies, AI platform providers are increasingly expected to rely on them as implementation partners, several brokerages and analysts said. "This mirrors previous technology cycles where product companies relied heavily on system integrators for enterprise-scale deployment, reinforcing the continued relevance of (domestic) IT services players," ICICI Securities added.
Beyond internal efficiency, this shift towards AI offerings creates significant new service opportunities, allowing companies to pivot toward high-value offerings in AI strategy, agentic engineering, and large-scale digital modernisation. These capabilities empower IT providers to aggressively tackle decades of accumulated technical debt, such as accelerating the migration of legacy common business-oriented language systems to modern microservices, HDFC Securities said. In the face of advancement in AI tools, IT companies are successfully shifting their focus away from simple, defensive cost-optimisation toward proactive, strategic growth that fundamentally redesigns both business and engineering processes for the future, the brokerage said.
"The Nifty IT index has taken a pause around the price supports placed around 28500-28000 spot levels following a steep fall in February," Vipin Kumaar, senior technical and derivatives analyst at Globe Capital Markets, said. The positional chart structure is still negative. Sustained trading above 30600 might lead it towards the 31500 spot level, which would be an opportunity to initiate fresh short positions, he added. This week, the Nifty IT index ended 1.2% higher at 29541.65 points.
TOP HEADLINES
* Oracle Fincl in perpetual licence pact with US-based bank in $100-mln deal
* Infosys to buy Optimum Achieve Holdings, arms, Stratus Global for $560 mln
* L&T Tech to sell smart world, communication ops to AMI Paradigm Solutions
* Affle 3I gets patent in India; earlier granted in US for fraud IP addresses
* SEBI to sign MoUs with govt depts to coordinate on tackling digital fraud
* Brigade Ent launches residential project, revenue potential seen INR 11 bln
* Infosys arm to provide banking solutions to Philippines bank
* Inventurus Knowledge expands partnership with US-based company Certilytics
* See no direct impact of W Asia war on electronics exports -promotion body CEO
* Infosys to modernise University of Nottingham's infra, student mgmt system
* Over 1.6 mln UPI fraud cases involving INR 12 bln reported in so far in FY26
* Tata Communications launches platform for data centre connectivity
* Wipro expands operations in South Korea; launches innovation lab in Seoul
* LTM launches three AI platforms to modernise, deliver software
* Netweb Technologies reappoints CMD, 3 whole-time directors for five years
* Wipro launches artificial intelligence solutions stack for data centres
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:
| Company | Price | Week-on-week change in % |
Resistance | Support |
| COFORGE LTD | 1,144.70 | 5.10 | 1,195.00 | 1,115.20 |
| HCL TECHNOLOGIES LTD | 1,364.40 | 2.30 | 1,424.80 | 1,329.60 |
| INFOSYS LTD | 1,269.70 | 1.10 | 1,307.50 | 1,244.30 |
| L&T TECHNOLOGY SERVICES LTD | 3,198.40 | (-)1.00 | 3,292.00 | 3,093.20 |
| LTIMINDTREE LTD | 4,200.70 | (-)2.30 | 4,359.20 | 4,102.80 |
| MPHASIS LTD | 2,117.00 | 1.20 | 2,171.50 | 2,069.90 |
| PERSISTENT SYSTEMS LTD | 4,899.80 | 3.90 | 5,049.10 | 4,776.50 |
| TATA CONSULTANCY SERVICES LTD | 2,389.80 | (-)0.00 | 2,436.10 | 2,361.90 |
| TECH MAHINDRA LTD | 1,391.60 | 0.50 | 1,434.90 | 1,363.90 |
| WIPRO LTD | 191.60 | 0.40 | 195.00 | 186.20 |
| Index | Levels | |||
| NIFTY IT | 29541.65 | 1.20 | 30245.80 | 29109.10 |
| NIFTY 50 | 22819.60 | (-)1.30 | 23318.30 | 22555.20 |
| BSE SENSEX | 73583.22 | (-)1.30 | 75378.00 | 72637.00 |
End
Reported by Eshitva Prakash
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. 2026. All rights reserved.
To read more please subscribe
Share this Story:
