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Informist, Friday, Jul. 17, 2026

 

MUMBAI – The positive momentum in information technology stocks is expected to continue in the coming week with the earnings season gathering pace. So far, earnings in the IT space have turned out to be largely mixed. Next week, market participants will watch out for the June quarter earnings announcements and management commentary by Infosys, Mphasis, Mastek, Oracle Financial Services Software, and Cyient, among others, for further cues on the demand environment and growth outlook for 2026-27 (Apr-Mar). 

 

So far, domestic IT companies have reported mixed earnings for the quarter, with most of them reporting a better-than-expected top line while their bottom lines largely failed to meet the Street's view. After reporting a largely good set of numbers for the reporting quarter, Tech Mahindra now expects the growth momentum to continue throughout 2026–27 (Apr-Mar), supported by a strong deal pipeline, execution of deals won in the past 12 months, and deepening of client relationships. This will, however, be subject to developments in the broader macroeconomic environment, the company's management said.  

 

Despite reporting a sequential fall in bottom line in the June quarter, Tata Consultancy Services guided for a gradual recovery from the September quarter. HCL Technologies reported a largely good set of numbers with robust new deal wins for the June quarter. Its management maintained a constructive outlook for FY27, highlighting a strong deal pipeline, encouraging Q2 booking momentum and continued AI-led demand, while choosing not to raise sales growth guidance until there is better visibility on macroeconomic conditions and deal conversions.

 

Wipro, on the other hand, reported weaker than expected earnings, with both top line and bottom line failing to meet the Street's view. It reported a decline in its sales across regions and business segments for the quarter. Wipro expects its Jul-Sept information technology services sales to see a fall of 1.5% to a marginal increase of 0.5% on quarter to $2.57 billion-$2.63 billion, on a constant currency basis. Multiple brokerages trimmed their target prices for Wipro after the company's weak June-quarter results. 

 

On Friday, the Nifty IT closed 1.8% higher at 29226.60 points. Over the week, the sectoral index gained over 4% compared to the near 1% rise in the Nifty 50 and Sensex. "Expecting positive momentum to continue for IT space, the (Nifty IT ) index might rise towards 31000," Rupak De, senior technical analyst at LKP Securities, said. On the downside, the index is seen finding support at 28700 points, De added. 

 

TOP HEADLINES

 

* LTM partners with Glean Technologies to accelerate enterprise AI adoption
* Analyst Concall: Tech Mahindra sees Q1 growth momentum continue through FY27
* Tech Mahindra arm's stake purchase in Tech Mahindra Arabia delayed to Aug 31
* Analyst Concall: Wipro focused on margin rise but AI investment priority too
* Analyst Concall: Tech Mahindra sees Q1 growth momentum continue rest of FY27
* Top client accounts sales growing faster than co's average - Tech Mahindra
* Wipro positive about BFSI segment improving from Q2
* Hexaware Tech, AI co Factory partner for agent-native software development
* Earnings Outlook: Tata Tech Q1 consol PAT seen dn; sales up on deal ramp-ups
* Earnings Review: Wipro Q1 PAT down on higher costs, sales up once again QoQ
* Earnings Review: Tech Mahindra sales surge past expectations, PAT below view
* HCL Tech to buy Guardian India for $10.5 mln for insurance technology ops
* Top line of IT services firms to grow 1-3% in FY27, Crisil Ratings says
* Earnings Review: Newgen consol Q1 PAT falls 40% on quarter, sales down 21%
* TCS launches Gemini experience center with Google Cloud in Kolkata
* Latent View appoints Sonal Ramrakhiani as chief executive officer
* Cabinet OKs INR 1.275 tln for semiconductor mission 2.0 over 6 years
* Earnings Outlook: Wage hikes, acquisition costs to drag Wipro Q1 PAT down
* TCS launches NVIDIA-powered industrial AI solutions lab in Bengaluru
* LTM to deploy Microsoft 365 Copilot in L&T group for AI-led transformation
* Analyst Concall: Tata Elxsi positive on growth in transportation ops
* Earnings Review: Tata Elxsi Q1 PAT down 23% QoQ on higher costs; misses view
* Earnings Review: L&T Tech's Apr-Jun margin, PAT surpass expectations
* HCL Tech grooming freshers to serve as forward deployed engineers in 2-3 yrs
* Analyst Concall: No sales guidance change amid strong Q1 deal wins - HCL Tech
* HCL Tech sees ratio of depreciation, amortisation cost to revenue inching up
* Earnings Review:HCL Tech constant currency sales dn slightly; PAT above view
* HCL Tech to invest up to INR 35 bln to set up data centres in India
* S&P Global Ratings expects impact of AI on Indian IT cos to be uneven
* Intellect Design gets 3 customers for eMACH.ai Custody platform
* LTM partners with Anthropic to bring Claude AI tools in enterprise systems
* TCS signs multi-year deal to transform ABB network ops with AI
* Analyst Concall: LTM expects further sales growth, margin expansion from Q2
* Earnings Outlook: L&T Tech Q1 PAT rise seen outpacing sales on better margin
* Earnings Review: LTM PAT above view, constant-currency sales growth subdued
* Earnings Review: Just Dial Q1 PAT up 66% QoQ on sharp gain in other income
* Earnings Outlook: HCL Tech PAT seen flat QoQ, sales down on deal ramp-downs
* Earnings Outlook: Tata Elxsi Apr-Jun PAT seen down QoQ on deal ramp-up costs
 

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	1508.40	0.30	1586.80	1456.00
HCL TECHNOLOGIES LTD	1203.90	3.40	1235.40	1180.00
INFOSYS LTD	1096.50	2.70	1126.60	1077.00
L&T TECHNOLOGY SERVICES LTD	3415.30	4.20	3620.40	3248.40
LTM LTD	4075.60	1.00	4228.70	3959.10
MPHASIS LTD	2394.20	3.10	2440.10	2329.90
PERSISTENT SYSTEMS LTD	5183.90	2.60	5262.20	5050.80
TATA CONSULTANCY SERVICES LTD	2269.00	9.70	2312.90	2193.10
TECH MAHINDRA LTD	1572.90	8.10	1619.40	1504.00
WIPRO LTD	176.00	0.30	178.00	172.60
Index	Levels
NIFTY IT	29226.60	4.30	29625.90	28736.30
NIFTY 50	24334.30	0.50	24535.10	23998.60
BSE SENSEX	78151.45	0.80	78888.60	76939.50

 

End

 

Reported by Arya S. Biju

Edited by Avishek Dutta

 

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