Indian Information Technology (IT) region is trying to make a meaningful comeback for some time. The good news is that in the end there is some relief on the horizon. The Indian rupee is depreciation against the US dollar and other developed-market currencies hurt by the ongoing turmoil in global markets.
The rupee killed all-time closing for $ 87.57 earlier this month, as the improvement in the prospects of the US economy promoted greenback. In 2025 so far, the rupee has fallen by 1.3% against the US dollar, 1.4% against the euro and 1.8% against the British pound.
Also read: The premium stake of United Bruis takes the driver’s seat, but it is a bumpy road
From a macro perspective, a sinking rupee is a problem, mainly for importers, but exporters of India’s IT firm services and a large part of their revenue is shown in these currencies. Therefore, a depreciation increases well for the revenue growth of the sector and the margin outlook.
pole position
In a report on February 18, Jefferies India said that Ltimindtree Ltd, Wipro Ltd, Wipro Ltd, Sagility India Ltd and Coforge Ltd have been best kept to take advantage of it.
For factor in foreign exchange movements, Jeffers has upgraded FY26/27 income-shyer estimates for IT shares under its coverage to 2–5%. Since 2011, IT stocks have improved the Nifty when the rupee has depreciated faster than the rupee, euro and pound, Brokerage said. Therefore, if recent forex trends continue, this stock can improve the Nifty again in 2025.
Also read Telecom Q3 Review: Airtel win in ARPU battle, but jio can win war
So far in FY25, the Nifty It Index is about 17%, which is ahead of the just 2% increase of the Nifty 50. The sector’s December quarter (Q3y25) earnings reflected the impact of seasonal furls, but management comments indicated that the deal pipelines were strengthened. Even more importantly, green shoots are emerging at discretionary expenses, mainly vertical in major banking and financial services in the US. In addition, the pain is down in retail vertical.
Hey, big spander
An analysis of Nirmal Bang Institutional Equities showed that the technology expenses of six major American banks in the December quarter (Q4cy24) had a high level of $ 9.5 billion, which is growing 4% and 5% year-to-year. . Banks are funding their own increased technology spending through earlier investments in automation and efficiency.
“This trend suggests discretionary deals and a potential upward movement in mega-dil, which is expected to be physical in CY25. The other vertical is estimated to follow a similar trend, with some intervals, “Nirmal Bang Report dated 18 February.
Indian IT companies are also looking at the demand for Artificial Intelligence (AI) and Jenai-operated services, and are investing in Jeanai capabilities and launching many platforms. Jeanai adoption may expect the speed to gather in the next 12–18 months, and can lead to better demand for cloud services and data standardization.
Also read ABB India at a crossroads: Decline in profit but stock recession indicates trouble
For large-cap IT shares under its coverage, Nomura hopes that FY 25 will increase from about 2.8% to about 5.7% in FY 25. “We believe that FY25F India will mark the lower part of revenue growth for IT companies. On February 19, the Nomura Global Markets Research Report said that a strong recovery of discretionary demand may take some time in some quarters.
As things stand, demand-deed for the sector is ending. However, uncertainty around the quantum and frequency of cutting interest rate by US Federal Reserve and Potential Tariff Wars can delay revenue collection for close-term spirit and IT companies, so assessment needs to be more appropriate. In addition, there is a need to monitor weakness in manufacturing and telecom areas.
