IT Stocks Outlook
Seen to remain weak near term; US Fed rate decision eyed
This story was originally published at 20:57 IST on 11 September 2026
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MUMBAI – Weakness in information technology stocks will likely continue in the near-term amid rising expectations of an interest rate hike by the US Federal Reserve in its monetary policy meeting next week. Given that domestic IT companies earn a major part of their revenues from US-based clients, higher borrowing costs there would directly impact IT spending.
The US Consumer Price Index-based inflation was 0.4% on month in August, up from 0.1% in July, the Bureau of Labor Statistics said Friday. In the 12 months through August, retail inflation was 3.4%, the same as July. Economists polled by Reuters had projected the August CPI inflation at 0.4% on month and 3.4% on year.
The US central bank tracks the Personal Consumption Expenditures price index for its 2% inflation target. Analysing the CPI components that feed into the PCE calculation, Capital Economics has estimated PCE inflation to have risen to 3.4% in August, Dow Jones Newswires reported, citing the research firm. Markets are now pricing in 90% odds of a 25-basis-point rate hike by the Fed next week, up from around 70% ahead of the CPI inflation data, Dow Jones Newswires reported. Odds of 50 bps in rate hikes over the current year surged to 82% from 62% ahead of the report. Earlier this week, the European Central Bank raised interest rates by 25 bps to 2.5%.
Friday, the Nifty IT index closed 0.1% higher at 28921.50 points. However, on a weekly basis, the index fell nearly 6% compared to the around 2?ll in both the benchmarks Nifty 50 and BSE Sensex. During the week, the sectoral index fell in four of the five sessions. In the upcoming holiday-truncated week, the IT index is seen finding support at 28300 points and resistance at 29720 points, Nandish Shah, senior derivative and technical analyst at HDFC Securities, said.
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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 | 1846.50 | (-)6.40 | 1888.80 | 1786.20 |
| HCL Technologies | 1206.10 | (-)6.80 | 1236.10 | 1180.70 |
| Infosys | 1037.70 | (-)8.20 | 1055.80 | 1020.60 |
| L&T Technology Services | 3337.40 | (-)4.50 | 3391.20 | 3295.20 |
| LTM | 4275.00 | (-)6.10 | 4397.40 | 4213.80 |
| Mphasis | 2295.00 | (-)5.20 | 2328.40 | 2256.60 |
| Persistent Systems | 5516.00 | (-)2.30 | 5603.00 | 5401.00 |
| Tata Consultancy Services | 2200.80 | (-)4.50 | 2253.40 | 2159.20 |
| Tech Mahindra | 1541.00 | (-)3.50 | 1577.70 | 1500.30 |
| Wipro | 167.40 | (-)5.10 | 169.40 | 164.20 |
| Index | Levels | |||
| NIFTY IT | 28921.50 | (-)5.80 | 29358.80 | 28453.20 |
| NIFTY 50 | 23398.10 | (-)2.10 | 23575.90 | 23142.50 |
| BSE SENSEX | 74781.76 | (-)2.30 | 75376.70 | 73862.70 |
End
Reported by Arya S. Biju
Edited by Shubhayan Bhattacharya
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