After mixed quarterly earnings from Tata Consultancy Services Ltd. and HCL Technologies Ltd., the focus now shifts to Infosys Ltd. and Wipro Ltd. which are going to report their second-quarter results today.
Investors will watch for signs of stability in an IT sector marred by US H-1B visa shock as well as US HIRE Act that proposes a 25% “outsourcing tax”. That, when discretionary spending by clients hasn’t particularly revived even as AI threatens to upend business models and spur layoffs.
Watch out for growth guidance—as well as large-deal momentum—and the management commentary on client demand.
The NSE Nifty IT Index remains above its 50-day moving average. An upbeat management outlook could help push it toward the 100-day average.