KPIT Tech, Infosys, Coforge, LTM shares gain up to 4%; Wipro up despite fall in ADRs 

IT stocks made a recovery on Thursday, rising up to 4 per cent after a recent weakness. Infosys Ltd, the second largest IT services exporter by sales,  jumped 4.28 per cent to Rs 1,027.65 apiece. HCL Technologies Ltd, the third largest software exporter, advanced 3.01 per cent to Rs 1,066. Tata Technologies Ltd and Coforge Ltd added 3 per cent each. 

Among other IT stocks, LTM Ltd gained 2.94 per cent to Rs 3,650. Mphasis, Persistent Systems Ltd, Tata Elxsi rose 2.5-4 per cent. Tata Consultancy Services Ltd (TCS), L&T Technology Services (LTTS), Tech Mahindra Ltd (TechM), Oracle Financial Services Software Ltd (OFSS) and KPIT Technologies Ltd (KPIT Tech) advanced up to 3 per cent. Wipro also added 0.97 per cent to Rs 171.70, even as its ADRs declined 17 per cent in the US trading overnight.   

Anthropic said Fable 5 is now available to users globally on the Claude Platform, Claude.ai, Claude Code, and Claude Cowork. "We will re-enable access on AWS, Google Cloud, and Microsoft Foundry as quickly as possible," it said.

In a note on Wednesday, MOFSL said despite IT stock valuations having corrected meaningfully, a sustained re-rating will require evidence that the IT demand is improving and revenue growth is stabilising. The rerating also requires companies to demonstrate that AI-led opportunities are beginning to offset productivity-related headwinds, MOFSL said.

"With 1H tracking below the run-rate needed to sustain the upper end of FY27 guidance ranges, the ask on 2H to bridge the gap becomes increasingly impractical. We therefore expect companies to walk back the top end of their guidance bands this quarter. We expect Infosys to lower the upper end of its FY27 guidance by 50bp, while HCL Tech could trim the upper end of its services growth guidance by 100bp," MOFSL said.

Over the last 30 years, the second half of the calendar year has consistently been the strongest period for the Nifty IT Index, SAMCO Securities said. Average quarterly returns stand at just 3.4 per cent in Q1 and 0.6 per cent in Q2, but improve sharply to 10.2 per cent in Q3 and 11.3 per cent in Q4, it said.

"Seasonality alone should never drive an investment decision. However, when attractive valuations, extreme pessimism and favourable historical seasonality align, the odds begin to tilt in investors' favour," it said.