However, that does not take away from the fact that the stocks remain underperformers in 2026 as well as over the last 12 months. The four largecap IT names, TCS, Infosys, HCLTech and Wipro are down 33%, 23%, 28% and 22% respectively over the last 12 months.
What Keeps IT In News
The currency weakness is one of the biggest factors that keeps IT stocks in the news. The rupee made a record low of 96.38 against the US Dollar on Tuesday.Weakness in the currency provides a margin tailwind to these IT companies, who get most of their revenue from the North American Market in the US Dollar and other currencies, whereas most of their fixed costs are in the local currency.
TCS Rolls Out Wage Hike
According to a report in Moneycontrol, Tata Group giant TCS has rolled out an annual salary hike of 5% on average, with employees in the A+ band getting an average hike between 9% to 13%, those in the ‘A’ band getting a 5% to 9% hike, ‘B’ band getting a 1% to 3.5% hike, while those in the ‘C’ band getting a negligible or negative salary change.
TCS has also asked managers to report 5% of the employees as underperformers.
CLSA Bets On Coforge
Earlier in the day, brokerage firm CLSA retained its “high-conviction outperform” rating on Coforge with a price target of ₹2,075, calling the stock a big beneficiary of the AI cycle and projecting an upside potential of 54% from Monday’s closing levels.
All constituents of the Nifty IT index are trading with gains on Tuesday.
