{"id":9203,"date":"2025-05-23T11:22:14","date_gmt":"2025-05-23T05:52:14","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=9203"},"modified":"2025-05-23T11:22:14","modified_gmt":"2025-05-23T05:52:14","slug":"nifty-it-index-jumps-2-as-bernstein-predicts-earnings-revival-on-strong-deal-momentum","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/nifty-it-index-jumps-2-as-bernstein-predicts-earnings-revival-on-strong-deal-momentum\/","title":{"rendered":"Nifty IT Index Jumps 2% as Bernstein Predicts Earnings Revival on Strong Deal Momentum"},"content":{"rendered":"

The Indian IT sector saw a robust rally on May 23, with the Nifty IT index rising nearly 2%, after global brokerage firm Bernstein projected a positive outlook for the industry. The surge comes on the back of strong deal activity, AI adoption, and a stable demand environment.<\/em><\/p>\n

According to Bernstein, the Indian information technology sector is set for a sharp earnings revival, with deal momentum showing impressive traction. This upbeat sentiment lifted IT stocks across the board, making the Nifty IT index the top sectoral performer for the day.<\/p>\n

At 10:25 AM, the Nifty IT was up by 1.8%, trading at 37,711.40, with all constituent stocks in green. Leading the rally were Oracle Financial Services Software, Coforge, and Persistent Systems, which rose between 1.5% to 3%.<\/p>\n

Bernstein\u2019s Bullish Outlook on IT Sector<\/h2>\n

Bernstein highlighted that earnings growth is expected to improve in the current fiscal year, compared to FY25. With rising guidance from IT companies, the brokerage anticipates a stronger revenue trajectory heading into FY27.<\/p>\n

The firm emphasized that large IT players like Infosys and TCS continue to see a stable business outlook, with clients not anticipating any sudden demand slowdown. Artificial Intelligence (AI) adoption has also played a key role, showing promising early results, especially in the financial services segment, where IT budgets are higher.<\/p>\n

Deal activity has been particularly strong, with the March quarter of FY25 reporting a total contract value of $21.9 billion, led by giants like TCS, Infosys, and HCL Technologies.<\/p>\n

Stock Ratings and Target Revisions<\/h3>\n

In its latest report, Bernstein maintained an ‘outperform’ rating on several IT services firms including Infosys, Tata Consultancy Services (TCS), Tech Mahindra, and Coforge, while revising their target prices upwards:<\/p>\n

    \n
  • \n

    Infosys: Target raised to \u20b91,760 (from \u20b91,680)<\/p>\n<\/li>\n

  • \n

    TCS: Target revised to \u20b93,910 (from \u20b93,740)<\/p>\n<\/li>\n

  • \n

    Tech Mahindra: Target hiked to \u20b91,680 (from \u20b91,480)<\/p>\n<\/li>\n

  • \n

    Coforge: Target increased to \u20b99,530 (from \u20b98,630)<\/p>\n<\/li>\n<\/ul>\n

    Interestingly, KPIT Technologies retained its \u2018outperform\u2019 rating, though Bernstein slightly reduced the target price to \u20b91,390 from \u20b91,400. On the other hand, L&T Technology Services was rated \u2018underperform\u2019, with a lowered target of \u20b93,990 from \u20b94,150.<\/p>\n

    Sector-Wide Optimism<\/h3>\n

    Bernstein\u2019s latest note has reignited investor confidence in the IT sector, underlining that strong deal wins and AI integration are likely to drive a meaningful earnings recovery. The focus on mid-cap IT firms like Coforge and Persistent Systems also suggests a broader participation in the sectoral revival.<\/p>\n

    With a stable global demand environment and continued technological transformation, the outlook for Indian IT remains highly promising as we progress through FY26.<\/p>\n","protected":false},"excerpt":{"rendered":"

    The Indian IT sector saw a robust rally on May 23, with the Nifty IT index rising nearly 2%, after global brokerage firm Bernstein projected a positive outlook for the industry. The surge comes on the back of strong deal activity, AI adoption, and a stable demand environment. According to Bernstein, the Indian information technology […]<\/p>\n","protected":false},"author":2,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"ppma_author":[1329],"class_list":{"0":"post-9203","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-political-news"}," _eael_post_view_count":0,"authors":[{"term_id":1329,"user_id":2,"is_guest":0,"slug":"snehagandhi","display_name":"Sneha Gandhi","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/9203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=9203"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/9203\/revisions"}],"predecessor-version":[{"id":9206,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/9203\/revisions\/9206"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/9205"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=9203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=9203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=9203"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=9203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}