Infosys, HCL Tech, Coforge, other IT stocks rise up to 3% a day after a massive crash. What lies ahead?

Published 22 June 2026 · finance

Shares of IT companies including Infosys, Tech Mahindra, Coforge and others rebounded on Monday, after the stocks hit fresh record lows on Friday when Accenture’s

Shares of IT companies including Infosys, Tech Mahindra, Coforge and others rebounded on Monday, after the stocks hit fresh record lows on Friday when Accenture’s guidance cut spooked investors.The Nifty IT index gained 1.3% to 27,785 on Monday, as seen at 10:10 am. Coforge, OFSS, Tech Mahindra and Persistent Systems shares gained 2-3%, while those of Infosys, LTI Mindtree, HCL Tech, Mphasis, Wipro and Tata Consultancy Services (TCS) rose around 1% each.This comes a session after the sectoral index plunged to 26,634.50 on Friday, the lowest level seen by the sectoral index since April 2023. Accenture last week revised its FY26 revenue growth guidance to 3-4%, compared with its earlier outlook of 3-5%. The company also projected fourth-quarter revenue of $17.75-18.4 billion, falling below Street expectations of $18.47 billion, according to LSEG data.Accenture’s softer outlook retriggered worries that enterprises remain cautious on discretionary spending related to IT consulting and digital transformation projects, even as investments in artificial intelligence and cybersecurity continue.

Indian IT companies derive a major portion of their revenue from the US economy. Hence, worries around reduced discretionary spending may have led to the sharp sell-off in the stocks on Dalal Street on Friday.Also read: Why Accenture's warning sparked a Rs 1.35 lakh crore meltdown for TCS, Infosys, other IT stocksAnalysts highlight attractive IT valuationsHowever, analysts were quick to point out attractive valuations. Buying in IT stocks can emerge at lower levels since valuations are becoming attractive after the sharp correction, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.Nuvama in its note also said that the stock price reaction on Friday appeared highly exaggerated, although Accenture’s guidance cut and soft bookings are slightly negative for Indian IT. "We continue to maintain that Gen AI will eventually lead to expansion of TAM for Indian IT companies. Additionally, post the recent sharp correction, sector valuations have become highly attractive," it added.Also read: Down 30% in 1 year, are AI-hit Infy, TCS still value stocks?Technical view on Nifty ITPabitro Mukherjee, Deputy Vice President of Technical Research at Bajaj Broking, warned that volatility in IT stocks is likely to be high in the coming sessions ahead of the quarterly results season.

Price-wise, there is still no sign of reversal of the corrective trend; hence he suggested avoiding the sector at current levels. "Let the price stabilise and only a formation of higher high and higher low on the weekly chart and a move above the 50-day EMA, currently placed around 29,325, will be the initial sign of trend reversal," he said.Mukherjee expects the Nifty IT index to find immediate key support at 26,180 levels, being the identical lows of CY22 and CY23."The index continues to trade below its key short- and long-term moving averages, while the RSI has slipped below 40, indicating bearish momentum. Additionally, DI- has crossed above DI+ on the ADX indicator, reflecting growing seller dominance. The 27,050–27,000 zone remains a crucial support zone. Any sustainable move below this zone can lead the index to extend its weakness further on the downside.