Buoyed by Q1 show, Indian IT shrugs off IBM shock

Indian IT stocks showed resilience after IBM's 25 percent post-earnings crash, as analysts noted the weakness was hardware-driven and not directly comparable to Indian IT services. Better-than-expected Q1 results from TCS, HCL Tech, LTIMindtree, and L&T Technology Services eased investor concerns, with management commentary pointing to improving deal pipelines and stable client spending. Despite the Nifty IT index being down about 25 percent in 2026 and largecap valuations correcting sharply from around 30 times to below 17 times forward earnings, analysts believe the worst may be behind for the sector.