Indian IT Stocks Witness Decline After Q2 Results
Shares of Indian information technology companies fell during early trade on Friday after a host of large players reported their second-quarter earnings. The Nifty IT fell over 1% with all but one of the nine constituents in red.
Wipro Ltd. tanked 4.6% and Infosys Ltd. slipped 1.6% after they reported their financials on Thursday. Infosys share price and Wipro share price were affected due to the Q2 results.
LTIMindtree Bucks the Trend
LTIMindtree Ltd. was the only stock in green, rising 2.3%. This comes as a surprise as most of the other IT stocks were in the red.
Infosys’ quarter-on-quarter revenue growth in constant currency stood at 2.2%, lower than the 2.6% in the first quarter. Similarly, the large deal total contract value came in at $3.1 billion in the September quarter, down from $3.8 billion in the preceding June quarter. The net new deals accounted for 67% of the total TCV.
Net profit rose 6% quarter-on-quarter to Rs 7,364 crore, beating analysts’ expectations. Revenue of the Bengaluru-based largest IT services firm rose 5.2% over the previous quarter to Rs 44,490 crore. To know more about Infosys Q2 results, visit our website.
Wipro’s Q2 Results
Wipro logged a consolidated net profit of Rs 3,246.2 crore, as against Rs 3,330.4 crore in the preceding quarter. This was in line with the estimate of Rs 3,279 crore, as projected by the analysts tracked by Bloomberg.
The company expects revenue from its IT services business to be in the range of $2,591 million to $2,644 million for the third quarter of FY26, reflecting a sequential growth guidance of 0.5% to 1.5% in constant-currency terms.
This comes after a sequential uptick of 0.3% in constant-currency revenue during the second quarter. For more information on Wipro Q2 results, click here.
Impact on Indian Stock Market
The decline in IT stocks has affected the overall Indian stock market. The Nifty today is down due to the poor performance of IT stocks.
The Sensex today is also down, with the IT sector being one of the major contributors to the decline.
What’s Next for IT Stocks?
The IT sector is expected to recover in the coming days, with most of the companies having a strong order book and a robust pipeline of projects.
However, the Indian stock market news suggests that the sector may face some challenges in the short term due to the global economic slowdown.
Conclusion
In conclusion, the IT stocks have declined after the Q2 results, with Infosys and Wipro being the major losers. However, LTIMindtree has bucked the trend and risen 2.3%.
The Indian stock market has been affected by the decline in IT stocks, with the Nifty and Sensex both being down. For more information on stock market news today, visit our website.
