More Stories

Informist, Friday, May 8, 2026

MUMBAI – Information technology stocks are expected to remain under pressure in the coming week, after seeing some recovery in the past two weeks, according to analysts. However, unless global growth conditions weaken sharply from here, the extent of the fall in these stocks is seen limited, they said. 

"IT stocks have already gone through a decent correction, and a large portion of concerns around weak global demand are now reflected in valuations. However, the sector still lacks strong triggers for a sustained rally because clients in the US and Europe remain cautious on discretionary spending," Ravi Singh, chief research officer at Master Capital Services, said. 

Most domestic IT players have announced their March quarter earnings so far. Management commentary from major sectoral players remained conservative, with most companies still flagging slower deal conversions, delayed decision making, and weaker visibility in certain verticals. A meaningful recovery in IT stocks is seen once there is better clarity around global demand and technology spending trends, Singh said. He sees valuations of large-cap IT companies far more reasonable compared to earlier peaks.

This week, the Nifty IT index rose 0.1%, compared to the 0.5% and 0.7% rise in the benchmark Sensex and Nifty 50 index. On Friday, the sectoral index settled at 29394.20, up 350.70 points or 1.2%. In the coming week, the index is seen finding support at 28300 points and facing resistence at 30000 points, Ajit Mishra, senior vice president research at Religare Broking, said.

TOP HEADLINES

* Intellect Design Jan-Mar consol PAT up over 4-fold QoQ at INR 1.2 billion
* Route Mobile Jan-Mar consol PAT rises nearly 12% QoQ, beats analysts view
* Sonata Software Jan-Mar consol sales fall 17.7% QoQ but PAT rises 25%
* Persistent Systems gets Databricks certification for healthcare, life science
* Zen Technologies launches seven new defence technology products
* Newgen Software arm gets order worth INR 144.7 mln from UK-based client
* Hexaware Technologies Jan-Mar consol net profit rises 21% QoQ , sales up 4%
* Birlasoft Jan-Mar consol PAT rises 46.7% QoQ to INR 1.76 billion
* Affle 3I to mull raising up to $120 mln via issue of shares or warrants
* Firstsource Jan-Mar consol net profit rises 71% on qtr to INR 2.05 billion
* Zen Technologies launches AI-powered, counter-drone system
* Analyst Concall: Coforge aims for 15.5% consol EBIT margin for FY27
* Earnings Review: Coforge beats Street estimate; Q4 PAT more than doubles QoQ
* TCS sets May 25 as record date for final dividend of INR 31 a share
* LTM partners with US-based Uniphore to develop domain-specific AI solutions
* Analyst Concall: Tata Tech does not see W Asia war impacting clients' capex
* LTM sets May 25 as record date for final dividend payment
* Brainbees Solutions arm delays capital subscription payment for new US arm
* Earnings Outlook: Coforge Jan-Mar PAT, sales seen up QoQ on deal ramp-ups
* Netweb Technologies India Jan-Mar PAT falls 3.7% QoQ as sales fall 3.9%
* Zen Tech Q4 consol PAT falls 69% YoY despite dip in expenses; sales down 45%
* Coforge acquires Cigniti Technologies post NCLT approval
* Tech Mahindra arm to buy 85% in Alluri Tech for 28 mln Canadian dollars
* Firstsource ties up with Typeface to launch AI-native marketing systems
* HCL Tech expands tie-up with MetLife Stadium, becomes official AI partner
* Amazon-Future Group feud ends; parties settle matter after yrs of litigation
 

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 Avishek Dutta

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.