markets
IT stocks outperformed on April 6 even as broader Indian markets traded weaker, with gains driven by technical buying and momentum-led trades. The Nifty IT index rose 0.6 percent, while benchmark indices Sensex and Nifty declined nearly 0.6 percent each. Broader markets also slipped, with the BSE MidCap 150 and SmallCap 250 indices falling about 0.3 percent each.
Market participants said the recent rally in IT stocks was largely driven by price action and improving technical setups following a sharp correction earlier amid concerns around artificial intelligence. The correction has made valuations relatively more attractive, prompting fresh buying interest.
Among individual stocks, Wipro gained 1 percent, while Persistent Systems rose 0.9 percent. Infosys and Tech Mahindra advanced 0.8 percent each, while HCL Tech and TCS gained 0.7 percent each. On the downside, L&T Technology Services and Oracle Financial Services Software declined 0.5 percent each, while Mphasis fell 0.3 percent.
Investor focus is also on the upcoming earnings season, with TCS scheduled to report results on April 9. IT services companies are expected to post a mixed performance for the March quarter, with attention on FY27 guidance for early signs of demand recovery amid continued concerns around AI-led disruption.
Infosys is expected to guide for 2–5 percent growth, while HCL Tech may project 3–6 percent growth. Wipro is likely to indicate a sequential decline of up to 2 percent or flat growth in the near term.
For the March quarter, performance is expected to remain healthy but below earlier expectations for some companies, reflecting continued softness in discretionary spending and delays in decision-making. In constant currency terms, sequential revenue growth is expected to be muted, with TCS likely to post 0.6 percent growth, Infosys declining 0.7 percent, HCL Tech falling 1.6 percent, and Wipro down 1.3 percent.
IT stocks have seen significant correction in recent months amid concerns that artificial intelligence could compress timelines for large projects such as cloud migration of enterprise systems. Analysts said faster adoption of AI may impact application implementation revenues, while potential deflation in traditional service lines could offset emerging AI-led revenue opportunities over the near term.