Infosys, TCS lead IT rebound after four-day slide

Indian IT stocks rebounded in Thursday trade, lifting the Nifty IT index by nearly 4% after a four-session decline that had pushed the gauge to a fresh 52-week low near 25,700. Buying in large caps such as Infosys and TCS, along with strong gains in Coforge and other midcaps, followed a sharp sectoral drop of about 7% over the previous four sessions.

Market overview

Index	2 Jul Close (approx.)	Move & % Change	Comments
Nifty IT	26,710	+940 pts (approx. +4%)	Rebounded after four-day slide to 52-week low of 25,699.

Note: figures are approximate; final exchange data not available at time of publication.

• Nifty IT snapped a four-session losing streak.
• Index had shed nearly 7% over the prior four trading sessions.
• Thursday’s rebound followed dip buying after the 52-week low.

Key movers in IT

Top Gainers	Sector	Notable Factor
Coforge	IT services	Led index gains, stock up around 5% in trade.
Infosys	IT services	Rebounded about 4% after falling below ₹1,000 recently.
Mphasis	IT services	Rose around 4% alongside broader IT buying.
HCL Technologies	IT services	Gained about 4% after recent weakness.
Persistent Systems	IT services	Advanced around 3.5% in the midcap IT basket.
LTI Mindtree	IT services	Climbed nearly 3% with other large caps.
TCS	IT services	Added nearly 3%, aiding index recovery.
Tech Mahindra	IT services	Rose around 2% after recent declines.
Oracle Financial Services	IT products	Gained about 2% in early trade.
Wipro	IT services	Added nearly 1%, lagging larger peers.

• Infosys shares had slipped below ₹1,000 for the first time since September 2020.
• Infosys remained down about 48% from its peak despite Thursday’s bounce.
• Coforge climbed about 4.35% to roughly ₹1,430 in active trade.
• Mphasis traded near ₹2,212, up about 4% on the day.
• Persistent Systems advanced to around ₹4,482, up about 3.5%.

Macro and global cues

• IT companies derive a significant share of revenue from North America.
• Sector sentiment is sensitive to US interest rates and inflation trends.
• Recent concerns focused on the risk of further US Federal Reserve rate hikes.
• Traders now price roughly a 64% probability of a US rate hike in September.

Fed commentary and IT sentiment

• US Federal Reserve Chair Kevin Warsh signalled commitment to the 2% inflation target.
• Warsh said inflation expectations and risks had eased in recent weeks.
• He indicated no comfort with an inflation objective above 2%.
• Warsh noted the Fed remains an independent central bank with unchanged goals.
• His comments offered some relief to investors worried about aggressive tightening.
• Easing inflation risks are seen as supportive for US tech and IT spending.

Earnings outlook for Indian IT

• Brokerage assessments indicate subdued near-term growth for Indian IT services.
• Large-cap IT firms face macro uncertainty from Middle East tensions and US rates.
• Clients’ flat tech budgets are intensifying competition among IT vendors.
• Economic gains from AI adoption are being passed on to customers, pressuring pricing.
• FY27 is expected to remain a subdued year for sector growth.
• Upcoming earnings season is projected to show weak quarterly growth for large caps.
• Wipro is expected to post the weakest revenue performance among large caps.
• Tech Mahindra is projected to lead large caps with about 1% revenue growth.
• Mid-cap IT firms are expected to post stronger growth than large caps.
• No major changes are expected in annual guidance from Infosys and HCL Tech.
• Wipro is expected to guide for Q2 FY27 revenue growth between -1% and +1%.
• Revenue growth estimates for FY27 and FY28 have been cut by 100-200 bps.

Technical snapshot for Infosys

• Infosys snapped a four-day losing streak with a near 4% rise.
• Stock had broken below ₹1,000, a key psychological level, earlier in the week.
• Current rebound leaves the stock still about 48% below its record high.
• Recent price action reflects persistent concerns over global IT spending.

Frequently Asked Questions

Why did Infosys and other IT stocks rebound today?

IT stocks rebounded on dip buying after a four-session slide to a 52-week low in Nifty IT, aided by some relief from US Federal Reserve commentary on inflation risks.

Is the outlook for Indian IT sector growth improving?

Brokerage assessments suggest the long-term market remains intact but expect subdued growth through FY27 due to macro uncertainty, flat client tech budgets, and competitive pressure.

How far is Infosys from its peak despite the rebound?

Even after today’s roughly 4% recovery, Infosys remains about 48% below its all-time high, reflecting ongoing concerns over global IT spending.