January 2026 kicks off the Q3 FY25 earnings season for India's biggest IT firms, with TCS and HCL announcing results on Jan 12 and Infosys on Jan 14.
Why the IT sector could bounce back
Analysts say large‑cap IT stocks have been falling for most of 2025, but several factors may help them recover in 2026:
- Global interest rates are easing, making financing cheaper.
- The Indian rupee’s strength supports earnings when converted to foreign currency.
- Improved technical charts suggest better market momentum.
- Artificial‑intelligence (AI) projects are adding new growth opportunities.
What the numbers mean for investors
The IT index is down about 11 % this year, so valuations look attractive compared with other market segments. Visa‑related regulations in the U.S. still exist, but most Indian IT firms have shifted to local hiring and diversified delivery models, limiting the impact.
Stock picks before the earnings release
Analyst Sugandha Sachdeva highlights three stocks to watch:
- HCL Technologies – seen as the top pick because of strong momentum, clear AI‑driven growth, and good relative strength.
- Wipro – offers selective upside but less momentum than HCL.
- TCS – recommended for long‑term investors seeking stability, with a strong support level around ₹2,850 and solid banking‑sector exposure.
Bottom line
With earnings results arriving in January, softer global monetary policy, and AI‑led productivity gains, many expect the Indian IT sector to turn a corner in 2026. Keep an eye on the upcoming reports and consider the highlighted stocks based on your risk appetite.
Remember, this is just perspective, not a prediction. Do your own research or talk to a certified advisor before making any investment decisions.