IT stocks surged in morning trade on Friday, 9 October, driving their sectoral index Nifty IT up by more than 3%, a day after domestic IT bellwether TCS reported better-than-expected September quarter (Q2FY27) results.
Nifty IT jumped over 3% in the morning trade, with leading the charge, surging almost 6%. On Thursday, TCS reported Q2 revenue of ₹73,188 crore, up 11.20% year-on-year (YoY). Consolidated net profit rose by 15% YoY to ₹13,884 crore.
Besides, TCS said it does not expect any impact on its workforce strategy or client engagements due to the US government’s move to suspend it and other major IT firms from the employment-based programme.
Healthy Q2 results by TCS had a rub-off effect on other IT stocks too. In morning deals on Friday, Infosys, LTM, Wipro, Mphasis, HCL, Oracle, Tech Mahindra, and Coforge all jumped. Around 10:10 am, the Nifty IT index was 3% up with all components in the green.
IT stocks performance today
Nifty IT components jumped between 2-6% in the morning session of trade on Friday. TCS share price surged nearly 6%, clocking the biggest gain in the Nifty IT index.
Shares of , Coforge, , , and Mphasis jumped nearly 4% each.
Infosys share price climbed over 3%. Shares of Tech Mahindra and HCL Tech rose by nearly 3% each.
(OFSS) share price climbed over 2% during the morning session.
IT sector Q2 results expectations
Brokerage firm Motilal Oswal Financial Services expects demand commentary to remain soft into Q2FY27, due to macro pressures, interest rate hikes, AI-related disruptions, and geopolitical overhang.
“We do not expect QoQ growth acceleration across our coverage universe in Q2FY27, with softness likely to extend into Q3FY27 due to furloughs as well,” said Motilal Oswal.
Motilal Oswal’s estimates show Q2FY27 results may mirror the tepid macro environment, with QoQ CC (constant currency) growth expected in the range of -0.5% to 3.0% for large-caps. Mid-caps may outperform once again, with growth ranging from flat to 12%, led by continued large-deal ramp-ups and inorganic contributions in some cases.
Axis Securities believes IT services’ growth may remain moderate in Q2FY27 amid a cautious demand environment, with growth partially supported by large deal ramp-ups, outcome-based engagements and AI-led spending.
“Margins are expected to remain mixed, impacted by wage hikes, AI investments, deal ramp-ups and acquisition costs, but partly offset by INR depreciation and productivity gains,” said Axis.
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