The Nifty IT index tumbled almost two percent in trade, dragged by midcap IT services players Persistent Systems Ltd and Coforge Ltd, on Thursday, July 24.
At 10.15 a.m., the Nifty IT index was down two percent or 733 points at 36,218. All index constituents, barring Oracle Financial Services Software, were trading in the red.
Constituents Persistent Systems and Coforge were trading at Rs 5,099 and Rs 1,688 respectively, both lower by nine percent. The fall in the shares of the firms dragged the index by 128 points, respectively. Further, index heavyweight Infosys was down one percent, but due to its weightage of 39.3 percent in the Nifty IT index, it dragged the index by 150 points.
Persistent Systems' revenue for the quarter grew 3.9 percent or 3.3 percent in constant currency terms to $389.7 million. The revenue growth was led by the BFSI arm, (up 9 percent QoQ) and Software, Hi-Tech & Emerging Industries (up 3.6 percent), while Healthcare & Lifesciences (down 1.9 percent) saw a decline, primarily due to planned offshore shift at some of the large customers.
Coforge posted an 8 percent growth in revenue in constant currency terms for the June quarter. The performance also sharply contrasted with Persistent Systems and LTIMindtree, which reported CC growth of 3.3 percent and 0.8 percent, respectively.
Infosys reported an 8.7 percent year-on-year rise in consolidated net profit to Rs 6,921 crore for the quarter ended June 30, 2025, beating Street expectations. Revenue for the fiscal first quarter grew 7.5 percent to Rs 42,279 crore. Infosys said it expects revenue growth of 1-3 percent in constant currency terms for FY26, revised up from 0-3 percent earlier. The firm maintained its operating margin guidance at 20-22 percent.
All the IT players stated that the elevated macro and geopolitical uncertainty may cause a near-term blip, as clients adopt a more cautious stance.
In the midcap space, Nomura said it prefers Coforge to Persistent Systems, while all brokerages were bullish on Infosys, believing the IT services giant would outperform its largecap peers in the current financial year.
Follow our live blog to catch all the updates
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
