Latest news with #Coforge
Time of India
12 hours ago
- Business
- Time of India
IT stocks up 35% in less than 2 months. Can it withstand Fed caution and geopolitical risk?
Coforge has surged nearly 35%, with Tech Mahindra and LTIMindtree each rising 28%. Persistent Systems, HCLTech, Oracle Financial Services Software (OFSS), and Mphasis have recorded gains between 16% and 22%. Even large-cap players like Infosys and Wipro have delivered double-digit returns during the same period. Tired of too many ads? Remove Ads Fed Pushes Back on Rate Cuts Tired of too many ads? Remove Ads Tariff Threats Tired of too many ads? Remove Ads Outlook After a sharp sell-off earlier this year, Indian IT stocks have delivered a striking comeback. The Nifty IT index has surged 10.5% in under two months, with several individual stocks posting even stronger gains. But with global headwinds intensifying—from a cautious US Federal Reserve to rising geopolitical tensions—the sustainability of this rally is now in question. Coforge has rallied nearly 35%, while Tech Mahindra and LTIMindtree are up 28% each. Persistent Systems Oracle Financial Services Software (OFSS), and Mphasis have posted gains of 16% to 22%. Even large-caps like Infosys and Wipro delivered double-digit returns in the same the rebound is starting to face resistance. Following the US Fed 's June policy meeting, the Nifty IT index slipped nearly 1%, signalling renewed caution among Federal Reserve kept its benchmark rate unchanged in June but raised its core PCE inflation projection—its preferred inflation measure—from 2.8% to 3.1% for 2025. Headline PCE is now expected to reach 3%, up from earlier estimates, indicating that price pressures are proving persistent.'The Federal Reserve's decision to hold interest rates steady comes as no surprise, given the persistent inflationary pressures in the U.S. economy,' said Suresh Darak, Founder, Bondbazaar. 'These pressures were... exacerbated by global conflicts pushing up oil prices and sustaining inflation.'At the same time, US GDP growth expectations have been revised down to 1.4%, raising concerns about delayed tech spending by large clients. 'Growth and inflation outlook is at loggerheads at this moment,' said Vaqarjaved Khan, Senior Fundamental Analyst at Angel One. 'Markets are interpreting this tone as somewhat hawkish.'With only one rate cut now likely in FY26, Indian IT companies that rely on US enterprise spending may see continued pressure on deal as rate uncertainty builds, global tensions are driving a fresh spike in oil prices. Over the last week, conflict between Iran and Israel has intensified, and there are fears that the US may get involved. Iran's Supreme Leader has threatened to block the Strait of Hormuz, a vital passage for nearly 20% of the world's oil shipments, while US President Donald Trump has hinted at a more aggressive US a result, Brent crude prices jumped more than 18% to $79, while WTI rose 18.5% to $75.7 over just seven trading Indian IT firms, a prolonged oil rally could lead to higher inflation globally, currency volatility, and tighter tech budgets for energy-sensitive risks are also back in focus as the US heads toward its presidential election. Fed Chair Jerome Powell recently warned that 'tariff effects on inflation can be persistent,' sparking concern for Indian IT exporters that depend on stable global trade flows.'Going forward, if the US Fed delivers a 50-bps rate cut in 2025, it would increase liquidity in the global markets,' said Khan. 'However... Middle East tension and tariff-related announcements by the US... could increase inflation expectations globally. If any of these risks play out at a larger extent, the upside scenario in Indian equities might get halted.'The recent 35% rally in IT stocks has been driven in part by easing attrition, improving margins, and hopes of a demand revival. But with the Fed turning cautious and geopolitical risks rising, the sector's near-term trajectory looks uncertain.'Jerome Powell's comment that 'despite heightened uncertainty, the economy is in solid position' is important. However, he has warned that 'tariff effects on inflation can be persistent'... With only 1.4% GDP growth expected this year, the US is unlikely to attract a lot of capital flows,' said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit IT names like LTIMindtree and Tech Mahindra dropped over 3% in a single session on June 19—reflecting the sector's sensitivity to global IT index's sharp bounce from its early-2025 lows shows that investors remain optimistic about long-term fundamentals. However, the path forward is likely to be sticky inflation, oil-driven macro risks, tariff uncertainty, and a cautious Fed, the sector's recovery rally faces real tests. Whether the momentum can continue—or gives way to another round of selling—may depend on how these risks evolve over the next quarter.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
Time of India
3 days ago
- Business
- Time of India
Top 5 Indian IT exporters lose revenue share as mid-tier companies rise
ET Intelligence Group: The share of top five IT exporters in the total sector's revenue fell by over 100 basis points year-on-year to 81.3% in the March 2025 quarter. It has gradually fallen over the past few quarters to hit the lowest level in at least 29 quarters or since March 2018 quarter amid rising traction shown by a select mid-tier IT companies , including Coforge , Hexaware, and Persistent Systems . The tier-II companies have been reporting higher revenue and profit growth year-on-year over the past several quarters compared with the larger peers led by the shifting focus of clients to short term projects from larger multi-year transformational deals. The top 5 IT exporters include TCS , Infosys , HCL, Wipro and Tech Mahindra ranked based on annual revenues. Sample of tier-II companies include 79 mid and small tier IT companies. The top-tier companies have also reported lower share of net profit over the recent few quarters. In June quarter, it fell to 86.3% from 87.3% in year-ago quarter. The mid and small tier companies have gained lead over top companies in revenue and profit. "Select large and mid-tier companies are gaining share as opposed to the usual narrative of large companies consolidating out smaller ones," mentioned Kotak Securities in a sector report. Agencies Global clients of Indian IT exporters have been cautiously assessing the geopolitical scenario, which has delayed their decision making process over the past few quarters, and in turn affecting the project ramp ups. The sample of mid and small IT companies reported better revenue growth than top-tier companies in each of 15 quarters to March 2025. Their net profit growth was higher in 12 out of past 17 quarters since March 2021.
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Business Standard
4 days ago
- Business
- Business Standard
Coforge, Infosys, TCS: Why are IT stocks rising in trade today? Explained
IT stocks today: Information Technology (IT) shares were rising in trade on Monday, June 16, 2025. The Nifty IT index hit an intraday high of 39,258, rising 2 per cent. Among individual stocks, Persistent Systems share price and Mphasis share price was ruling 2.6 per cent higher each, followed by Coforge (up 2.5 per cent), Oracle Financial Services Software (up 2.4 per cent), Tech M (2 per cent), Infosys (1.6 per cent), and TCS (1.5 per cent) at 2:40 PM. In the broader universe, Dynacons Systems, Newgen Tech, KPIT Tech, Sonata Software, and Cigniti Tech rose up to 8 per cent. Nifty IT index in 2025 So far in calendar year 2025, the Nifty IT index has slipped nearly 10 per cent on the NSE as against the benchmark Nifty50's growth of around 5.5 per cent. Why are IT stocks rising in trade today? The rise in IT stocks comes amid a decline in Indian Rupee against the US dollar. A decline in Indian Rupee is beneficial for IT stocks as it boosts related companies' revenues in dollar terms. Notably, the domestic currency started 10 paise weaker against the US dollar on Monday, at 86.18 per US dollar, versus Friday's close of 86.08/$. Further, thus far in June 2025, Rupee has declined around 1.7 per cent against the greenback, trading as the worst performing Asian currency. FPI & geopolitics Foreign portfolio investors (FPIs) have been selling Indian equities and buying dollars, which has pushed up Dollar prices. FIIs/FPIs were net sellers of Indian stocks on Friday, June 13, as they dumped equities worth ₹1,263.52 crore. They also sold India stocks on June 12 and June 11, worth ₹3,831.42 crore and ₹446.3 crore, respectively. So far in June 2025, foreign investors have net sold Indian stocks worth ₹4,812.4 crore. Besides, the recent surge in oil prices amid Israel-Iran tensions has pumped up Dollar demand by oil-drilling and refining companies, boosting the greenback's price. Going ahead, investors will watch out for the US Federal Reserve's interest rate decision on Wednesday, June 18, where they expect the central bank to hold the rates steady amid a stable jobs market. Nonfarm payrolls in the US rose 139,000 in May 2025, above the Dow Jones estimate for 125,000 and a bit below the downwardly revised 147,000 that the US economy added in April. A strength in the US economy bodes well for IT stocks, as the US is a key market for Indian IT companies. IT sector: Q4 results According to analysts at Nuvama Institutional Equities, Q4FY25 revenue growth was modest, but in-line with expectations. Quality Tier-2 companies outperformed largecap peers, with Coforge and Persistent Systems delivering double-digit year-on-year (Y-o-Y) revenue growth. Margins, too, were broadly in-line with estimates with companies expanding margins Q-o-Q and Y-o-Y with a few exceptions. The highlight of the quarter, the brokerage said, was the strong deal bookings, which were solid with almost all companies reporting Y-o-Y growth (ex-TCS, Infosys, Cyient). IT sector outlook in India 2025 Meanwhile, in the ongoing quarter (Q1FY26), IT companies reported a slowdown in deal wins in April 2025, which remained largely flat in May 2025, amid the looming tariff-related uncertainty. Analysts believe the ongoing global macroeconomic uncertainty will keep deal momentum slow in the coming months. "The three-month rolling sum of deal signings, a strong one-quarter lead indicator of deal total contract value (TCV), declined further in May 2025. Europe deal signings saw some recovery from a decline in April. North America saw a sharp decline. Among verticals, BFSI led with strong deal signings, while those in Manufacturing were steady M-o-M. TCS and Infosys (4 each) led the deal wins in May 2025, followed by Wipro (2)," said those at BNP Paribas. According to channel checks by Kotak Institutional Equities, the deal activity in the IT sector is tilted toward cost takeout. This is being achieved through vendor consolidation and outsourcing. Many vendor consolidation deals announced by companies are not net new for the IT industry. Companies that are aggressive, have good client engagement and can structure deals smartly are gaining wallet share. Select large and mid-tier companies are gaining share as opposed to the usual narrative of large companies consolidating out smaller ones. In some cases, deals involve upfront cash payments or other incentives offered to clients to win deals. The use of balance sheet to win deals, while not common, is increasing. These deals may not be margin-dilutive, although they can be NPV-dilutive, the brokerage said. "Profitability pressures are high, resulting from pricing decline in competitive deals and lack of leverage of growth. Companies are managing margins by fine-tuning costs, aligning compensation with business dynamics, and close control on all discretionary costs. Rupee depreciation will be critical to meet margin aspirations of companies, assuming companies don't aggressively cut variable compensation," KIE said in a recent report. The brokerage believes FY2026 will mark another year of low single-digit growth for the incumbents, not encouraging, especially with potential deflationary GenAI risks for the sector. Risk-reward in IT services, it said, is balanced. The brokerage picks Tech Mahindra. Hexaware, Infosys, Coforge and Indegene as its key picks.
Time of India
10-06-2025
- Business
- Time of India
10 mid-tier IT companies join $1 billion club in last 5 years
Bengaluru: Call it the mid-tier IT firm's breakout moment. Over the past decade, 15 companies crossed the $1 billion revenue mark—10 of them in just the last five years, with several more on the cusp. This marks a structural shift in the mid-tier segment, packing a bigger punch. Take Coforge, for instance. It aims to achieve a revenue milestone of $2 billion by fiscal 2027. The company surpassed $1 billion in revenue during the financial year 2022-23, demonstrating a year-on-year growth of 22.4% in constant currency terms. Digital engineering company Nagarro's revenue crossed $1 billion in the 2023 financial year, up from $908 million in the corresponding period last year. Nagarro follows a January to December financial year. The company recorded a growth of 9.4% in constant currency in 2023. Of Nagarro's 18,000 employees, 12,000 are based in India across 12 cities. While these companies were growth-ready, former Cognizant India CMD Ramkumar Ramamoorthy, in a LinkedIn post, said three powerful forces have redefined their trajectory. Seasoned leaders from tier-1 firms brought strategic clarity, global perspective, and execution muscle—sharpening the edge of mid-tier companies. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo Private equity as a growth engine and an imbibed long-term value mindset accelerated transformation and scaling ambitions. Mid-tier players rapidly built and scaled advanced digital capabilities—closely aligned with evolving client expectations. Ramamoorthy said, "One of the best things that happened to Indian IT after Y2K is senior management attrition. Seasoned leaders who built and ran large portfolios in IT companies such as Cognizant, Infosys, and HCL took on CXO roles in mid-sized firms and built the much-needed muscles to gracefully scale these companies. With more such leaders being made available today, in the years to come, we should see a larger number of companies get past the magical $1 billion in revenue, ably compete with Tier-1 players, and catalyse growth. " He is also a partner in tech growth advisory firm Catalincs. In the last four months, nearly a dozen mid-sized firms saw top deck changes. LTIMindtree welcomed Venu Lambu as their new chief executive, while Virtusa brought in Nitin Banga from Global Logic to lead as their CEO. Rohit Kedia, who brings 28 years of experience in technology and digital engineering, was appointed CEO at ChrysCapital-owned digital engineering company Xoriant. He previously served as chief growth officer at LTIMindtree. Engineering services firm Cyient appointed Sukamal Banerjee as CEO of its DET (digital, engineering and technology) business. "Also, with dozens of PE firms making a beeline for the IT industry, the investee companies are a big draw for these leaders not only for CXO roles but also for Board positions. These firms bring in global best practices across all aspects of business—people, process, platforms, partnerships, among others—which also helps fast-track the journey to a billion dollars and more." Peter Bendor-Samuel, founder and chairman of US-based IT advisory Everest Group, said, "However, perhaps the most important factor has been the PE firm's ability to change the mindset of these firms and attract some of the industry's most capable executives to run them. The combination of first-rate executives, acquisitions, and focused investments in sales and marketing has proven a sure-fire recipe to drive highly profitable and fast growth. " These shifts have repositioned mid-tier companies as credible contenders, not just fast followers—rewriting what growth looks like in the industry's next chapter.
Business Standard
10-06-2025
- Business
- Business Standard
Indices trade with small gains; IT shares rally for 5th day
The frontline indices traded with minor gains in mid-morning trade, tracking positive global cues. The Nifty hovered above the 25,100 level. IT shares extended gains for the fifth consecutive trading session. At 11:30 IST, the barometer index, the S&P BSE Sensex, added 29.93 points or 0.04% to 82,475.14. The Nifty 50 index rose 23.55 points or 0.09% to 25,125.50. The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.30% and the S&P BSE Small-Cap index added 0.35%. The market breadth was positive. On the BSE, 2,245 shares rose and 1,521 shares fell. A total of 178 shares were unchanged. Buzzing Index: The Nifty IT index rose 1.78% to 38,339.85. The index rose 4.14% in the five consecutive trading sessions. Coforge (up 3.01%), Persistent Systems (up 2.91%), Tech Mahindra (up 2.27%), Oracle Financial Services Software (up 1.4%), Mphasis (up 1.36%), LTIMindtree (up 1.33%), HCL Technologies (up 1.32%), Tata Consultancy Services (up 1.12%), Infosys (up 0.97%), and Wipro (up 0.55%) advanced. Stocks in Spotlight: Jindal Saw surged 9.06% after announcing board approval for three overseas investments worth up to $118 million, aimed at expanding its footprint in the Middle Easts iron and steel industry. OneSource Specialty Pharma rose 4.45% after the company announced that its flagship drug-device combination facility in Bangalore has retained its compliance status with the U.S. Food and Drug Administration (USFDA). Global Markets: Asian stocks traded mixed on Tuesday as investors awaited further developments from the ongoing U.S.-China trade talks. Trade discussions between the two countries resumed in London on Monday. The U.S. delegation included Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, while the Chinese delegation was led by Vice Premier He Lifeng. The talks follow a May agreement to temporarily reduce mutual tariffs. Current discussions are focused on China's export controls on rare earth minerals and U.S. restrictions on semiconductor exports to Chinaboth of which have significant implications for global supply chains. In the U.S., equity market movements were subdued on Monday ahead of the upcoming consumer price index (CPI) inflation data release scheduled for Wednesday. The S&P 500 rose 0.09%, marking its second consecutive gain. The Nasdaq Composite added 0.31%, while the Dow Jones Industrial Average edged down by 1.11 points.
