Infosys, TCS and other IT stocks jump up to 5% on dip buying. Is the worst over?

Indian IT stocks rallied up to 5 percent on dip buying, with the Nifty IT index climbing nearly 4 percent (around 940 points) to 26,710 after falling to a 52-week low of 25,699 in the prior four sessions. The rebound was triggered by US Fed Chair Kevin Warsh's comments that inflation expectations and risks have eased, offering some relief to the rate-sensitive sector. However, Nomura cautioned that Indian IT firms face near-term headwinds and expects anaemic growth in FY27, projecting subdued upcoming earnings with revenue growth estimates cut by 100-200 basis points.