Infosys, TCS, Tech Mahindra rally as Nifty IT surges 3% ahead of Q1 earnings kick-off

IT stocks were trading with strong gains in morning deals on Tuesday, July 7, ahead of the June quarter (Q1 FY27) earnings season, which is set to begin on Thursday, July 9, with Tata Consultancy Services (TCS) scheduled to announce its quarterly results.

The NIFTY IT index surged as much as 3.22% to 28,156.20 levels with all 10 constituents trading in the green.

Data show that the index has gained 7% over the past five sessions.

Q1 FY27 outlook subdued

India’s IT services sector is expected to post muted numbers for the June quarter as enterprises remain cautious about discretionary technology spending amid global macroeconomic uncertainty, geopolitical concerns and a growing focus on AI-driven efficiency, analysts note.

Analysts, as reported by news agencies and channels, expect the top six Indian IT companies to report constant-currency organic US dollar revenue growth ranging from a 1.7% decline to 1.1% growth on a sequential basis.

Wipro is likely to be at the lower end of the range, while Tech Mahindra could lead the large-cap segment.

Among mid-sized players, Persistent Systems, Mphasis and eClerx are expected to deliver relatively stronger growth.

Last month, Accenture cut its revenue growth forecast and projected quarterly sales below Wall Street expectations. The company said the US-Iran conflict impacted its consulting business in the Middle East, resulting in a $400 million hit to regional operations during the third quarter.

It also warned of further pressure in the fourth quarter, highlighting the broader disruption caused by geopolitical uncertainty.

Accenture now expects annual revenue growth of 3% to 4%, compared with its earlier guidance of 3% to 5%.

As Accenture is closely tracked by Indian IT large-caps, the cautious outlook weighed on sentiment across the sector. Analysts believe the company’s weaker-than-expected performance, lower bookings and reduced guidance point to continued pressure on discretionary technology spending, delayed deal closures and slower project ramp-ups for Indian IT companies in the near term.

Here is how individual IT stocks are faring

When last seen, Infosys shares were trading over 4% higher at ₹1,085.20 apiece on the NSE, while Tech Mahindra was up 3.55% at ₹1,456.40. TCS shares were up 2.52% at ₹2,109.50, and Coforge shares were up nearly 2% at ₹1,509.80 apiece on the NSE.