IT stocks gain today with Nifty IT jumping 6% in 3 sessionsAI Quick ReadEven as the broader market remained under pressure, IT stocks stood out as one of the few pockets of strength on Dalal Street on Monday, April 6. The Nifty IT index rose more than 1%, extending its winning streak to a third straight session and taking its cumulative gain during this period to around 6%.
The move higher comes at a critical juncture for the sector, with the Q4FY26 earnings season set to begin next week. Investor focus has now firmly shifted to upcoming results from heavyweights such as TCS, Infosys and other frontline IT firms.
Among individual stocks, Coforge, Wipro, Tech Mahindra, Persistent Systems and Infosys advanced 1-2%, while HCL Tech, L&T Technology Services and Tata Consultancy Services (TCS) also traded with gains. On the other hand, Mphasis and LTIMindtree remained under pressure and were down around 0.5% each.
The latest rebound also signals a tentative recovery for the index after a weak run in recent months, having declined 5% in March and tumbled 19.5% in February amid concerns over AI-driven disruption and demand uncertainty. IT stocks had come under intense pressure in the last 2 months, with the Nifty IT index witnessing its steepest slump in 17 years amid growing fears that artificial intelligence could disrupt traditional business models and weaken demand.
The sell-off has been driven by softer IT spending in Western markets, elevated interest rates, and rising concerns that AI-led efficiencies may compress billing rates and trigger a structural slowdown in IT services revenue.
The relative outperformance in IT stocks today came even as the benchmark indices witnessed sharp intraday losses amid concerns surrounding the prolonged US-Iran war. The Sensex and Nifty 50 both traded more than 0.5% lower during the session.
At its lowest point in the day, the Sensex had fallen 591 points, or 0.8%, to 72,728.66, while the Nifty 50 dropped 170 points, or 0.75%, to an intraday low of 22,542.95.
With geopolitical tensions and macro uncertainty intensifying over the past month, the upcoming earnings season is expected to be closely watched, particularly for signs of demand recovery and management commentary on the business outlook.
The Indian IT pack is expected to post a subdued set of numbers for the March quarter, although the year-on-year (YoY) growth trend is likely to remain stable to slightly better for several companies. According to a report by Kotak Institutional Equities, the quarter is expected to benefit from the absence of furloughs, particularly in segments such as BFSI and retail, though this may be partially offset by a lower number of working days.
Revenue growth for most IT companies is likely to remain modest in Q4FY26, but the YoY profile could improve for a number of players. Within verticals, financial services is expected to emerge as the key sequential growth driver, the brokerage noted.
It further said that the sharp depreciation of the rupee against the US dollar is likely to support double-digit earnings growth for several IT firms.
Among large-cap IT names, the brokerage expects TCS to deliver the strongest revenue growth, while Persistent Systems is seen leading the mid-tier pack.
Beyond quarterly earnings, management commentary and FY27 guidance will be critical for the sector. Outlook statements are likely to reflect the impact of heightened geopolitical uncertainty due to the US-Iran war, along with the growing pressure of revenue deflation arising from GenAI-led programmes.
Kotak Equities’ preferred stock picks in the sector are Tech Mahindra, TCS, Infosys and Coforge.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience.
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Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism.
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Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends.
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