Strong Market Recovery Boosts IT Stocks The Indian stock market rebounded strongly, with the Nifty 50 rising 1.68% and the BSE Sensex climbing 1,450 points. Bank Nifty reached a new lifetime high at 57,830.20. Amid this positive trend ahead of Diwali 2025, IT stocks are emerging as attractive options for medium- to long-term investors.
Infosys Q2 Performance Highlights Infosys reported a solid 8.6% year-on-year revenue growth to Rs. 44,490 crore, maintaining a 21% operating margin. With $3.1 billion in total contract value, 67% net new deals and an Rs. 18,000 crore share buyback, Infosys’ AI-first “Topaz” platform underscores strong long-term growth potential and shareholder value creation.
Wipro’s Mixed Results Wipro’s Q2 revenue grew modestly by 1.8% year-on-year, but margins fell to 19.26%. While the company is transitioning toward AI-led services, its performance signals a continuing adjustment phase compared to peers, highlighting a mixed outlook for investors.
TCS and HCL Tech Performance TCS demonstrated operational stability with a 3.7% sequential revenue increase to Rs. 65,799 crore and a margin expansion to 25.2%. HCL Technologies posted robust growth with 10.7% YoY revenue rise and 15% digital revenue expansion, driven by its Advanced AI services generating over $100 million in quarterly revenue. Both companies show strong fundamentals but differ in scale and strategic focus.
Technical Outlook Favors Infosys Infosys’ stock has formed a 48-day bullish base, with support between Rs. 1,420–Rs. 1,440 and resistance near Rs. 1,565. Selling volumes have decreased, suggesting consolidation rather than weakness. A breakout above Rs. 1,565 could trigger an uptrend with potential to test Rs. 1,768 over the next year, making it technically appealing.
Fundamental Strength Comparison From a fundamental perspective, Infosys and TCS emerge as strong long-term investment options. Infosys is valued for its growth-oriented and innovation-driven scalability, while TCS offers stability and high profitability. Wipro and HCL, though performing well, either face transitional challenges or operate at a smaller scale relative to these leaders.
Investor Takeaway For investors seeking medium- to long-term IT sector exposure, Infosys appears better positioned both technically and fundamentally, supported by strong deal wins, AI initiatives, and solid financials. Wipro, while improving, remains a transitional play, and careful evaluation is advised before investment. Please note that the above information is based on a Mint report and is for educational purposes only.
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