On Monday, IT shares surged across the Indian stock market, driven by strong investor sentiment following Infosys’ earnings report for the March quarter. Mphasis, Tech Mahindra, Coforge, and HCL Technologies were among the biggest gainers in the IT sector, with the Nifty IT index jumping over 3 percent. The rally was largely fueled by Infosys' revenue growth guidance of 0-3 percent for the FY26 period, which struck a positive chord with investors and led to a broad-based rally in IT stocks.

Infosys’ Guidance Drives Sector Optimism

Infosys, India’s second-largest IT services firm, released its earnings for the quarter ending in March 2025, which largely met analysts' expectations. However, the key highlight from the earnings announcement was the revenue growth guidance of 0-3 percent in constant currency terms for the next financial year, FY26. While this was in line with expectations, the management commentary surrounding the "stable to marginally improving environment" for the IT sector provided an optimistic outlook for investors.

This positive outlook led to a sector-wide surge in IT stocks, with many companies benefiting from the ripple effect of Infosys’ performance. The Nifty IT index, which tracks the performance of the top IT stocks in India, emerged as one of the best-performing sectoral indices on Monday, following a 3.46 percent gain. Over the past five sessions, the Nifty IT index has risen by 5.45 percent, signaling robust growth and positive investor sentiment in the sector.

Stock Performances: Mphasis Leads the Pack

Among the top gainers in the IT space was Mphasis, which saw its stock price jump 6.37 percent, reaching an intraday high of ₹2,418.50 on the NSE. This strong performance came as investors responded positively to the company’s growth prospects, bolstered by the sector-wide rally sparked by Infosys' guidance.

Other notable performers included Tech Mahindra, which rose by 6.2 percent, hitting an intraday high of ₹1,389 per share, and Coforge, which saw an increase of 4.8 percent. HCL Technologies also climbed by 3.39 percent, reflecting the broad-based optimism surrounding the sector’s future prospects.

The Nifty IT Index: A Top Performer

On Monday, the Nifty IT index jumped 3.46 percent, positioning it as one of the top-performing sectoral indices of the day, only behind the banking sector. The sharp rally reflected not only the positive sentiment around Infosys but also broader confidence in the Indian IT industry’s ability to weather global economic uncertainties.

The Nifty IT index’s performance was underpinned by strong gains in major IT stocks like Mphasis, Tech Mahindra, Coforge, and HCL Technologies, which all registered solid increases in stock value. The index has gained 5.45 percent over the past five sessions, marking a period of sustained growth for India’s IT sector.

Infosys' Stable Outlook and Its Impact on IT Stocks

Infosys' management commentary mentioned a "stable to marginally improving environment" for the IT sector. This signals that while growth may not be explosive in the short term, the sector is positioned to maintain steady growth, which is seen as a positive development for investors.

The 0-3 percent revenue growth forecast for FY26 aligns with the industry’s expectations of moderate growth, following a period of uncertainty and macroeconomic challenges. Investors have been closely monitoring the impact of global economic conditions, such as the US recession fears and inflation concerns, on the Indian IT sector. However, the stable outlook provided by Infosys helped to reassure the market that Indian IT companies would continue to generate stable revenues and maintain healthy profit margins.

Tech Mahindra and Mphasis Lead Gains

Tech Mahindra and Mphasis were among the top performers on the day, each gaining over 6 percent. Tech Mahindra’s rise to ₹1,389 per share reflects investor confidence in the company’s ability to sustain growth amid the current IT landscape, driven by demand for digital services and transformation solutions. Meanwhile, Mphasis reached an intraday high of ₹2,418.50, marking a 6.37 percent jump as the company benefitted from market-wide optimism.

Both companies have been increasing their focus on digital transformation services, which has positioned them well for future growth. The recent gains signal that investors are confident in the future performance of Indian IT stocks, especially those like Tech Mahindra and Mphasis that are ramping up investments in cutting-edge technologies.

Coforge and HCL Technologies Experience Solid Gains

In addition to Mphasis and Tech Mahindra, Coforge and HCL Technologies also enjoyed solid gains, rising 4.8 percent and 3.39 percent, respectively. These companies, which specialize in IT services and consulting, have seen strong demand for their offerings in recent years, and their growth trajectory remains positive despite external uncertainties. Coforge’s recent wins in digital services and HCL Technologies’ global footprint in enterprise solutions have contributed to investor optimism.

Conclusion: A Positive Outlook for the IT Sector

The Nifty IT index’s strong performance on Monday, coupled with a broad rally in IT stocks, suggests that Infosys' earnings and guidance have provided a boost to the sector’s overall sentiment. With Mphasis, Tech Mahindra, Coforge, and HCL Technologies all rising sharply, it is clear that investors are optimistic about the future of the Indian IT industry.

Infosys’ stable growth guidance for FY26 has helped to reassure market participants that the IT sector will remain on a growth trajectory, even if the pace is moderate. As digital transformation services continue to drive demand, companies like Mphasis, Tech Mahindra, and HCL Technologies are well-positioned to capitalize on this trend, making Indian IT stocks an attractive option for investors.

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