More Stories

Informist, Friday, Jul. 3, 2026

 

MUMBAI – The Nifty IT index is likely to extend its winning run for most of next week, according to technical analysts. However, with Tata Consultancy Services set to kick off Thursday what is expected to be a weak earnings season for information technology majors, particularly after IT services bellwether Accenture cut its guidance, investor sentiment could waver towards the end of the week, analysts said.

 

This week, the sectoral index found a strong support level from which to rebound, but further upside could be limited by weak earnings owing to bleak global discretionary spending trends amid the West Asia war, artificial intelligence-led revenue deflation, and margin pressure. At the same time, with most constituents of the index near multi-year lows, buying interest at more comfortable valuations is likely to limit the downside risk.

 

IT companies are expected to see subdued growth in the June quarter, which is an otherwise seasonally strong quarter with additional billing days, according to brokerages. Leakages in traditional services and cannibalisation of new revenue streams are weighing on overall revenue growth, brokerage Prabhudas Lilladher said. Slower decision-making and elongated sales cycle are leading to delays in revenue conversion and execution. AI-led deals contribute disproportionately to the pipeline, and come with smaller deal size and tenure, which translates into lower annual contract value and fragmented deal closures, the brokerage said. It projected a median revenue growth of 0.8% sequentially in constant currency terms and 0.4% sequentially in dollar terms for the June quarter.

 

Kotak Securities also expects the June quarter to be weak for IT companies. It said the companies are likely to report a revenue below the midpoint of their annual guidance. It expects Infosys to revise its 2026-27 (Apr-Mar) sales growth guidance to 2.0–3.5% from 1.5-3.5% earlier, but the updated guidance is likely to include a 110 basis-point positive impact from the acquisition of the US-based Optimum. The brokerage expects Wipro to guide for (-)2% to 0% revenue growth for the September quarter. IT companies will likely report revenue growth of (-)1% to 1%. The services segment revenue of HCL Technologies is expected to fall 1% and that of Wipro is expected to fall 1.1%, Kotak said. It expects TCS to report flat revenues and Infosys to report 1% organic growth sequentially.

 

Other than the June quarter earnings, investors will pay close attention to commentary on AI adoption and order size of AI implementation. "Investors will likely reward companies that develop their own AI potential and invest in gen (generative) AI rather than (favour) those who are only focusing on (the) enterprise implementation level," an analyst from a domestic brokerage said about HCL Tech's $1.14-billion deal with a Europe-based company to establish an AI-led operating model. Consequently, its shares closed at INR 1,139 Friday on the National Stock Exchange, up nearly 6% from Thursday.

 

"The Nifty IT index formed a green 'Hammer' candlestick on its weekly chart, which signals a probable relief rally that might take it up to the 28500–29000 levels in the near term," Vipin Kumar, assistant vice-president for research at Globe Capital Market, said. "However, the overall chart structure remains negative, with multiple resistances on the higher side." The analyst sees the sectoral index facing resistance at 28500–29000 points next week, while it will likely find support at 26000–25800 points.

 

This week, the Nifty IT index ended at 27439.40 points, up 0.4%. HCL Technologies, Oracle Financial Services Software, and Mphasis ended the week 1.5–3.5% higher. Meanwhile, Tech Mahindra, Coforge, and Persistent Systems declined 2.0–3.3%. 

 

TOP HEADLINES

* Inventurus Knowledge US arm to avail lower facilities for TruBridge Inc buy
* HCL Tech, European firm sign $1.14-bln pact to establish AI model
* INTERVIEW: Yotta Data Services to file DRHP with SEBI within 2 wks, says MD
* IPO Alert: CSM Tech ends at 5% lower circuit after listing at issue price
* Newgen Sofware appoints Tarun Nandwani as CEO for 18 months from Aug 1
* Netweb Tech board approves raising up to INR 12 bln via equity, debt
* Tata Technologies partners with US-based Tenneco for mobility transformation
* L&T Tech launches engineering intelligence platform Ainfonix 4.0
* CE Info Systems appoints Rohan Verma as joint MD for 5 years from Wed
* Firstsource bars its CFO from trading in co's securities for 6 months
* Inventurus arm to invest up to $15 mln in associate co IKS WWMG MSO LLC
* Mphasis becomes member of the Microsoft Intelligent Security Association
* Persistent Systems inks pact to acquire stake in German co Nagarro via arm
* Hexaware becomes Anthropic authorised reseller for Amazon Bedrock
* Infosys gets digital transformation contract from Sterling Bank of Asia

 

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	1,464.00	(-)1.90	1,511.00	1,427.60
HCL Technologies	1,139.00	3.50	1,181.60	1,093.80
Infosys	1,047.20	0.60	1,079.30	1,025.90
L&T Technology Services	3,206.20	(-)3.50	3,310.70	3,114.10
LTM	3,757.80	(-)0.10	3,833.10	3,667.50
Mphasis	2,296.60	1.50	2,361.50	2,235.50
Persistent Systems	4,682.70	(-)3.30	4,822.00	4,570.80
Tata Consultancy Services	2,093.50	(-)0.10	2,130.00	2,066.80
Tech Mahindra	1,410.10	(-)1.90	1,464.40	1,371.40
Wipro	176.08	0.60	179.80	172.70
Index	Level
Nifty IT	27439.40	0.40	27968.20	27022.20
Nifty 50	24270.85	0.90	24426.30	24174.70
BSE Sensex	77763.91	0.90	78324.70	77429.60

 

End

 

US$1 = INR 95.21

 

Reported by Eshitva Prakash

Edited by Himanshi Gupta

 

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.