IT Stocks Brace for More Pain After Muted Q1

Macro uncertainty, US tariffs make outlook cautious

- SAI ARAVINDH

Investors in India's information technology (IT) companies are likely in for more pain ahead as muted earnings for the first quarter of 2025-26 (Q1FY26) play spoilsport at the bourses in the worst-performing sector this year amid macro uncertainties. Investors, analysts suggest, can look for better opportunities in the markets as things stand.

The Nifty IT index is set for three straight quarters of underperformance against the benchmark Nifty 50, and has fallen by 18.4 per cent so far this year, the worst among key sectors. Year-to-date (YTD), all 10 constituents of the index have declined, led by Oracle Financial Services, with a fall of 32 per cent, followed by Tata Consultancy Services (25.5 per cent), and HCLTech (23.5 per cent). During the same period, Nifty has risen by 4.8 per cent.