- Nifty IT index rose over 2% led by gains in large-cap tech stocks on July 7
- TCS, Infosys, HCLTech, and Wipro shares increased by 2-4% in early trade
- Nifty IT remains about 40% below its all-time high despite positive momentum
The Nifty IT index rebounded and jumped over 2% in early trade on Tuesday, July 7, driven by renewed investor's interest in large-cap technology stocks ahead of the first-quarter earnings results. The heavyweight tech stars such as Tata Consultancy Services, Infosys, HCLTech, and Wipro traded higher to lift the index by 2.6% after the opening bell. The resumption in the tech rally comes after the index snapped a two-session winning streak on Monday as selling in large-caps outweighed gains in select mid-cap names.
Notably, the Nifty IT index remains about 40% below its all-time high despite improving sentiment amid the upcoming earnings season and lower market volatility. The recent recovery in the IT index has been supported by expectations of robust quarterly earnings, lower market volatility and improved sentiment across the broader market. Shares of TCS, Infosys, HCLTech, Wipro traded with gains of 2-4% each, while Wipro, Coforge, LTM, Tech Mahindra and Newgen Software also traded in green.
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Fractal Analytics share price fell 2.51%, while Zensar Technologies shares declined 1.13%. Meanwhile, domestic equity benchmarks extended gains for the fifth consecutive trading session amid stable oil prices on Tuesday. The NSE Nifty 50 benchmark rose as much as 0.2% to 24,488 and the BSE Sensex rose as much as 0.3% or over 200 points to 78,504.01 in early trade. The Nifty IT rose 1.93% and is leading gains among sectoral indices, according to NSE data.
Q1 Results Preview
IT majors are expected to report another subdued quarter despite the June period typically being seasonally favourable, with analysts pointing to weak discretionary spending, delayed client decision-making and continued macro uncertainty. Citi expects June-quarter constant currency organic revenue growth of -1.5% to +1% for the top five IT companies.
Brokerages broadly see Tier-I IT majors to report muted sequential growth, with margins remaining broadly stable to lower as wage hikes, restructuring costs and artificial intelligence investments offset the benefit of currency movements. Management commentary on FY27 growth, client spending and AI strategy is expected to be the key driver of investor sentiment. Jefferies expects Infosys and Tech Mahindra to outperform among large-cap IT companies, while Hexaware is seen leading mid-cap peers.
Tech stocks lift Nifty IT index by 2% on Tuesday
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