IT stocks surge up to 5% ahead of Q2 results for Infosys, Wipro, and LTIMindtree

Shares of several leading Indian IT companies witnessed a significant rise on Thursday, with Mphasis and Tech Mahindra topping the gains ahead of the much-anticipated Q2 results of Infosys, Wipro, and LTIMindtree, scheduled for later today.

Mphasis led the way, seeing a sharp 5.5% jump to hit a day-high of ₹3,072.10 on the NSE. Infosys followed with a 2% rise, reaching an intraday peak of ₹1,958.35.

Other key players in the IT sector, including Tech Mahindra, Wipro, Tata Consultancy Services (TCS), and L&T Technology Services (LTTS), also experienced gains ranging from 0.5% to 1%.

The IT sector stood out as the top performer during today's trading session, showing a 0.7% increase by midday.

This contrasted with other market sectors, most of which were trading in negative territory.

The upward trend in Mphasis shares was supported by the company’s Q2 performance, revealed on October 16.

Mphasis reported a 4.6% sequential increase in net profit, which amounted to ₹423 crore, up from ₹404 crore in the previous quarter.

Similarly, LTTS saw a modest rise in its consolidated net profit, posting a 2% increase to ₹320 crore for the September quarter, compared to ₹315 crore a year prior.

With the spotlight on the imminent earnings releases of Infosys, Wipro, and LTIMindtree, investors are closely monitoring how these firms perform in key sectors like banking, financial services, and insurance (BFSI), as well as communications.

Infosys:

Analysts expect robust performance across major verticals, particularly in the US market, with strong contributions from the BFSI and Communications sectors. Despite facing some margin pressures last quarter, Infosys is projected to deliver solid revenue growth in constant currency terms, ranging from 2% to 3.6% quarter-on-quarter.

Wipro:

Wipro’s Q2 results, scheduled for release on October 17, have prompted mixed forecasts from analysts. The company’s revenue growth is expected to remain within the guidance range of -1% to +1% in constant currency. Key sectors like BFSI and healthcare are likely to contribute positively, though weaker performance in Energy & Utilities and Communications could temper overall growth.

LTIMindtree:

LTIMindtree is projected to post strong sequential revenue growth, particularly driven by the BFSI sector and signs of a revival in discretionary spending.

Estimates suggest that revenue could grow up to 3% quarter-on-quarter in constant currency terms, with year-on-year growth projected to reach 6%, based on an average of five brokerage forecasts.

As the results of these major IT firms are announced, market participants are keen to see how well these companies navigate challenges and capitalize on growth opportunities in the current economic environment.