INDIAN IT SECTOR OUTLOOK
Indian market faces AI narrative problem; it'll be smallcaps over largecaps for next 5 years: Manish Gunwani
Indian stock market valuations are attractive. However, global investor focus on Artificial Intelligence is diverting capital away from emerging markets like India. Foreign institutional investor flows are expected to remain subdued unless the AI theme slows or India implements significant structural reforms. Bandhan AMC is investing in manufacturing exporters and metals. The IT sector faces a long-term slowdown.
MSME manufacturing sector expands in Jan-March period but growth moderates amid West Asia crisis: PHDCCI survey
India's MSME manufacturing sector continued to grow in early 2026. However, expansion slowed due to global issues, especially the West Asia crisis. This crisis caused longer shipping times and higher costs. Business activity saw new orders and production increase, but hiring remained steady. The outlook for the next quarter is positive but cautious. Policy support is vital for sustained growth.
MSME activity expands but loses steam as global headwinds bite: PHDCCI survey
India's manufacturing MSME sector continues to expand. However, growth momentum is slowing. New orders and production are increasing at a slower pace. The outlook for the next quarter remains positive but cautious.
Where to invest now: Chemicals, capital goods, and banking top the list, says Aditya Shah
Aditya Shah, Hercules Advisors Founder, suggests investing in India's domestic growth. His top picks are chemicals, capital goods, and banking. He advises caution on FMCG and defence sectors due to high valuations. Shah emphasizes selectivity and prioritizing companies with corrected prices. Investors should focus on domestic-facing businesses for potential gains.
Rajesh Palviya sees Nifty rally extending this week on strong bullish momentum
Indian equity markets concluded last week with a third consecutive gain, driven by improving sentiment and sustained buying. Market expert Rajesh Palviya noted a strong bullish Marubozu candle on the weekly chart, indicating robust buying action. He advised a 'buy on decline' strategy as Nifty holds above 24,100, with potential rallies towards 24,600–24,700 if it breaks 24,400.
AI-driven credit, underwriting & collections to be banking disruptors
On overall credit expansion, the survey said lenders are positive and anticipate continued momentum in non-food credit. The survey, which covered 24 banks across segments, was released on Sunday.
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India's banking sector resilient; 11-13% credit growth for January-June likely: Survey
Indian banks anticipate robust non-food credit growth of 11-13% from January-June 2026, driven by improving balance sheets and steady economic activity. Retail and SME segments are expected to lead this expansion, while industrial credit will see a more measured recovery. Most bankers foresee a stable monetary policy stance.
Below-normal monsoon and West Asia conflict cloud India's agriculture outlook: BoB
India's agriculture faces a challenging year. A below-normal monsoon forecast and the West Asian conflict threaten crop production and rural economic growth. The India Meteorological Department predicts rainfall at 92 percent of the Long Period Average, the lowest initial forecast in 25 years. Disruptions in gas supply also affect fertilizer and pesticide availability.
Wipro CEO Srini Pallia says market is highly competitive, highlights firm's robust pipeline, AI adoption
Wipro's CEO Srini Pallia remains confident about the company's strong project pipeline. He indicates that ongoing global trade disruptions and tariff changes are not significantly impacting Wipro's business. While some specific client issues were noted in the American market, Pallia believes these will be managed. The company is focusing on leveraging AI for new projects and client solutions.
Has Nifty bottomed out? ICICI Securities dissects chart patterns, predicts these 21 stocks could outperform
After an 18-month consolidation and a 16% correction, ICICI Securities says Nifty 50 may have formed a durable bottom, supported by historical patterns and strong technical levels. The brokerage expects potential upside ahead and highlights banks, energy names and select midcaps as likely outperformers in the next market upcycle.
'Weak and lacklustre': Why Jefferies is disappointed with Wipro earnings as ADRs fall nearly 3%
Wipro’s March quarter results missed expectations, with weak revenue growth, declining profit, and soft guidance. Jefferies highlighted slowing deal momentum, weakness in BFSI and healthcare, and client-specific declines, raising concerns over near-term growth despite stable margins and a buyback announcement.
Nifty's roadmap to 24,800: Rahul Sharma of JM Financial explains why he’s buying the dip
Rahul Sharma of JM Financial remains bullish on Nifty, advising investors to “buy the dip” with 24,800 as the next key resistance. He believes support around 24,100–23,700 remains intact, backed by strong sector leadership in PSU, metals, and IT, with PSU banks likely to drive the next leg higher.
Earnings may drop but opportunity bigger; Vikas Khemani makes bullish call on India markets
Indian markets are rallying after a sell-off. Vikas Khemani of Carnelian Asset Management believes India's investment case remains strong. He sees short-term earnings disruptions as opportunities. Khemani has increased exposure to banking, financial services, and aviation. He also believes the narrative around Indian IT is exaggerated, with AI presenting new opportunities.
Global Markets | European shares inch higher on Middle East peace prospects; earnings in focus
European shares edged higher on Thursday as growing optimism about a potential resolution to the Middle East conflict lifted market sentiment, while investors assessed corporate earnings reports across the region.
Indian fund outperforming 98% of peers bets on defense stocks
A $3 billion fund at Kotak Mahindra Asset Management Co. is backing Indian defense stocks, wagering that geopolitical tensions will boost local arms production and support the government’s efforts to lower reliance on imports.
Mutual funds raise tech exposure in March after 8-year low. Tactical move or trend reversal?
Mutual funds raised tech exposure in March after an eight-year low, driven by tactical rebalancing and improved valuations. Experts say global cues like US tech recovery and easing rate concerns are aiding sentiment. Despite recent losses of up to 25%, the sector outlook remains gradually positive, supported by AI and cloud trends, though near-term volatility persists.
Engineering exports hit record high in FY26; govt support, FTAs boost growth: EEPC’s Chadha
Indian engineering exports achieved a record $122.43 billion in FY25-26. This growth occurred despite geopolitical tensions and trade policy shifts. The sector demonstrated remarkable resilience and adaptability.
ETMarkets Smart Talk | FY27 volatility a phase of adjustment, not a trend reversal; India’s growth story intact: Rajesh Iyer
FY27 begins with market volatility due to geopolitical tensions and rising oil prices, but experts see it as an adjustment phase. India's strong structural growth, supported by domestic consumption and public capex, offers constructive medium- to long-term prospects with stock-specific opportunities.
Puravankara Ltd Q4 pre-sales jump 3-fold to Rs 3,547 cr; 55 pc rise in FY26 to Rs 7,407 cr
Realty firm Puravankara Ltd on Monday reported nearly 3-fold jump in pre-sales to Rs 3,547 crore in the fourth quarter of the last fiscal year on better demand for residential properties.
Passenger vehicle dispatches rise 16% to 4,42,460 units in March: SIAM
India’s auto industry saw strong growth in March, with passenger vehicle dispatches rising 16% year-on-year to 4.42 lakh units, according to SIAM. Two-wheeler sales jumped 19.3%, while three-wheeler dispatches grew 21.4%, reflecting broad-based demand across segments.
IT stocks to rally on Wednesday? Infosys, Wipro ADRs surge up to 5%. Here's why
IT stocks may rally on Wednesday as Infosys and Wipro ADRs surged overnight, supported by strong gains in US tech stocks and easing fears of AI-driven disruption. Optimism over renewed Iran-US peace talks and falling crude prices softened macro concerns, boosting sentiment for Indian IT companies heavily exposed to the US market.
Anthropic's new Claude Mythos model: A new threat in the waiting for Indian IT stocks?
Indian IT stocks may face fresh turbulence as Anthropic’s preview model, Mythos, raises disruption risks. Analysts warn its sharp gains in software engineering tasks mark a “step-jump,” not incremental progress, potentially pressuring valuations. Kotak says the leap could have meaningful implications for IT services firms, narrowing adaptation time and intensifying concerns over near-to-medium term demand, pricing power, and margins.
Renewable surge fuels multi-year boom to India's power equipment industry: Report
The report highlights that high-voltage (HV) equipment manufacturers are "in the midst of a decadal upcycle as the grid keeps up with a step-change in renewables," underpinned by strong policy visibility and a sharp ramp-up in renewable capacity additions. The sector's outlook is anchored in India's ambitious clean energy pipeline, with the national plan targeting 470GW of solar and wind additions over the next decade. This is expected to significantly boost demand for transmission infrastructure and associated equipment.
TCS deal wins signal stability despite AI concerns: Sandip Agarwal
TCS's robust $12 billion Total Contract Value signals stability amidst AI disruption fears, indicating intact client spending. Analysts project 5-6% dollar growth and 16-17% rupee earnings CAGR, suggesting potential stock rerating. IT firms' system integrator role remains a strong moat, though AI may alter cost-sharing dynamics.
Wipro, Infosys ADRs fall over 2% after TCS reports Q4 results. What to expect on Friday?
ADRs of Wipro and Infosys declined after Tata Consultancy Services reported steady Q4 results with strong deal wins and rising AI revenue. Despite stable performance, investor reaction signals cautious sentiment and a muted market opening for IT stocks.
TCS going all-in on AI as $2.3 billion revenue takes shape. 5 takeaways from Q4 results
Tata Consultancy Services signalled a decisive shift by positioning AI as a core growth engine rather than an experimental bet. With annualised AI revenue crossing $2.3 billion, strong deal wins, expanding margins and a rapidly upskilled workforce, the company underscored that enterprise AI adoption is now driving meaningful business momentum.
Cautious FY27 outlook for IT sector amid macro headwinds and AI transition: Sumeet Jain
Indian IT firms face a period of measured growth in FY27. Global economic uncertainty and geopolitical risks are key challenges. While AI presents opportunities, its impact on revenue is not yet significant. Mid-cap IT companies show promise. According to Sumeet Jain of CLSA India, the sector's near-term outlook depends more on macro stability than AI shifts.
After a 24% crash, IT stocks are rising again. With FII selling slowing, is this the bottom?
India's IT sector shows a strong rebound, with the Nifty IT index climbing 8% in April as foreign investors significantly reduced their selling. Valuations are attractive, with many IT stocks trading below historical averages and holding substantial cash. While some strategists see a bottom, others remain cautious about future growth and AI's impact.
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