Infosys, Wipro, LTIM: IT stocks surge up to 3% in rangebound session; all 10 components of NIFTY IT in the green

One of the sectors that was performing well was the IT pack. The NIFTY IT index, last seen, was trading 1.41% higher at 35,181.20 levels, with all the 10 constituents trading in the green.

Among individual stocks, Infosys was trading 2.76% higher at ₹1,466 levels and was the top gainer on the index.

Infosys stock was in demand as the IT services major on Wednesday announced the formation of a joint venture with Telstra, Australia’s leading telecommunications and technology company.

"Accelerating Infosys’ strategy to help clients navigate their AI journey, this collaboration will propel AI-enabled cloud and digital solutions for Australian businesses," the press release said.

Infosys will acquire 75% of the shareholding in Versent Group, Australia’s leading Digital Transformation Solutions Provider and a wholly owned subsidiary of Telstra Group that delivers cloud and digital transformation.

"Infosys will have operational control, while Telstra will continue to retain a 25% minority stake in Versent Group, reflecting its confidence in the shared potential for growth and customer value, combining Telstra’s connectivity, Versent’s local digital engineering expertise, and Infosys’ global scale," the company said.

Besides Infosys, other leading gainers on the index were LTIMindtree (up over 2%), followed by Wipro (up 1.85%) and Coforge (up over 1%).

In July 2025, credit rating agency ICRA reaffirmed a stable outlook for the Indian IT services industry, forecasting a year-on-year revenue growth of 2-3% in US dollar terms for the fiscal year 2025-26.

ICRA's analysis, based on a sample of 15 leading IT companies representing approximately 60% of the industry's revenue, indicates that the sector will experience modest revenue growth of 2-3% in FY2026, slightly lower than the 2.9% growth recorded in FY25.

The subdued earnings momentum is largely attributed to uncertainties stemming from the US tariff imposition, which is expected to weigh on IT budget allocations in key markets.

"Notwithstanding some recovery in operating income rise in recent quarters, the Indian IT services industry is unlikely to witness any material uptick in earnings momentum in FY2026 owing to the uncertainties arising due to US tariff imposition," ICRA said.

Q1 FY26 earnings

India's top IT services firms delivered single-digit revenue growth in April-June, capping off a mixed, somewhat-sobering quarter as macroeconomic instability and geopolitical tensions weighed on global tech demand and delayed client decision-making.

Management commentary painted a mixed picture; caution prevailed, yet industry CEOs also emphasised cost optimisation, vendor consolidation, and opportunities in AI makeovers.

An overview of Q1 report cards of Indian IT giants shows year-on-year revenue growth ranging from 0.8 per cent (for Wipro) to 8.1 per cent (HCL Technologies).

Nuvama Institutional Equities expects the demand environment to remain challenging for the next one or two quarters due to macro uncertainty.

"However, we remain positive on the medium-to-long-term outlook, as technology debt is very high for enterprises, which will warrant revival in spending as macro improves," Nuvama said in its report post-Infosys' results, which concluded the Q1 earnings season for Tier-1 IT services firms.