IT sector rallies 2% as earnings season approaches, led by Mphasis and Coforge
India's Nifty IT index jumped about 2% on Thursday, outpacing a falling broader market, as investors priced in upcoming Q2 FY27 results.
On Thursday, the Nifty IT index climbed 2.1% during intra-day trading, making it the top-performing sector while the Nifty 50 and Sensex slipped. Nine of the ten constituents posted gains, with Mphasis up 4.44%, followed by Coforge at 3.85% and Infosys at 2.42%. Large-cap firms are projected to see flat-to-modest quarter-on-quarter growth, whereas mid-caps could post up to 12% growth thanks to large-deal pipelines and some inorganic contributions.
The earnings season for Q2 FY27 begins on October 8, when TCS will report its September-quarter results and consider a second interim dividend. Brokers note that demand remains soft due to macro-economic pressures, interest-rate hikes and AI-related disruptions, and they do not expect a growth acceleration for the sector in the coming quarters.
