HDFC Securities has identified Infosys, Persistent Systems, Mastek, and Sonata as top stock picks in the IT sector.
The IT sector is expected to see mixed revenue growth in Q1, with tier-1 companies showing muted CC revenue growth while mid-tier companies are expected to deliver strong growth.
There is a significant cross-currency tailwind expected in the quarter, leading to strong USD growth QoQ. Companies are likely to maintain their full-year FY26E guidance amidst global economic uncertainty.
The IT index has experienced a 10% decline year-to-date but has seen a ~3% increase in the last month.