IT stocks continued their upward momentum for the third consecutive trading session, with the Nifty IT index gaining over 1 percent to hit an intraday high of 39,054, supported by buying interest across large-cap technology counters.
The rally in IT shares comes amid short-term optimism driven by currency support and selective bargain hunting after recent corrections. Heavyweights such as TCS, Infosys, HCL Technologies and Wipro contributed to the index’s gains, helping the sector outperform the broader market during the session.
However, global brokerage Jefferies has cautioned investors against turning overly bullish on the sector. The brokerage highlighted downside risks for Indian IT stocks following Accenture’s muted revenue guidance, which signals continued uncertainty in global technology spending.
According to Jefferies, Accenture’s outlook reflects slower deal ramp-ups, cautious client spending and delays in discretionary IT projects, particularly in North America and Europe — key revenue markets for Indian IT companies. This could weigh on earnings growth visibility for FY26, despite recent stock price recovery.
While near-term sentiment has improved, analysts believe that sustained upside in IT stocks will depend on revival in global tech budgets, clarity on US rate cuts, and improvement in demand for digital transformation deals. Until then, the sector may remain vulnerable to sharp corrections after intermittent rallies.
The mixed signals suggest that although IT stocks are seeing short-term strength, medium-term risks linked to global demand softness remain firmly in focus for investors.
