Tech Mahindra, Persistent Systems, Coforge, and HCL Technologies Share Price Jump as Nifty IT Index Gains 1%

Market Performance

The Nifty IT Index rose over 1% during Tuesday’s morning trade, marking a strong start to the day.

• Opening Level: 34,589.85 (up from the previous close of 34,544.65)
• Intraday High: 35,072.50 (gain of more than 1%)

Tech Mahindra, Persistent Systems, Coforge, and HCL Technologies share price were among the key gainers driving this rally.

Main News

The surge came amid a relief rally, but the sector continues to face uncertainty over recently announced US tariffs on Indian exports.

It remains unclear whether these tariffs will cover IT services, which could potentially impact:

• Existing contracts
• New deal wins
• Client technology spending

Given the Indian IT industry’s high dependence on the US market, any slowdown in the US economy or rising costs due to tariffs could weigh on sector performance.

Company Details

Tech Mahindra, Persistent Systems, Coforge, and HCL Technologies share price Movement

• All four stocks saw notable intraday gains, contributing to the Nifty IT Index’s rise.
• Gains were supported by broader buying interest in IT counters despite external macroeconomic concerns.

Q1FY26 Financial Performance

The first-quarter results for major IT companies were mixed.

Key highlights:

• Revenue: Four of the five large IT firms posted a sequential revenue decline.
• BFSI Vertical: Up 2.7% QoQ and 5.7% YoY in dollar terms.
• Other Verticals: Manufacturing, retail, and healthcare segments underperformed.

Factors impacting performance included tariff-related uncertainties and reduced discretionary spending.

EBITDA & Margins

• EBIT margins for FY26 are projected to remain flat or decline.
• Employee headcount growth is expected to lag revenue due to AI-driven productivity gains.

Valuation Overview

• Current PE Ratio: 23.8x (1-year forward)
• 10-Year Average PE: 22.7x

This places current valuations above the long-term average.

Summary

The Nifty IT Index saw a solid start to the week, with Tech Mahindra, Persistent Systems, Coforge, and HCL Technologies share price contributing to gains. However, global uncertainties, particularly around US tariffs, remain a key risk. While the BFSI segment showed resilience, other verticals lagged, and revenue performance was weak for most large IT firms in Q1FY26.