IT Keeps Recovering | But Is the Guidance Cut Already Forgotten?

Nifty IT rose nearly 1 per cent in Tuesday's early trade — the sector's third consecutive session of outperformance against the broader Nifty, which remains flat to mildly negative. Indiaipo !INFY The centrepiece of that recovery is Infosys. The stock reported Q1 FY27 results last week — revenue up 14 per cent year on year to Rs 48,211 crore, net profit up 12 per cent to Rs 7,769 crore — but trimmed the upper end of its FY27 constant currency revenue growth guidance from 3.5 per cent to 3 per cent. That guidance trim, combined with a CEO transition announcement — with Ashiss Kumar Dash named CEO Designate replacing Salil Parekh — created a complex picture that the market is still processing. The stock has recovered from its 52-week low of Rs 1,030 hit in mid-June to trade near Rs 1,175 today — a 14 per cent recovery in two months. But it remains more than 32 per cent below its 52-week high of Rs 1,727.85, meaning the re-rating story is far from complete. The question the market is wrestling with is simple: does the IT sector's recovery continue on the back of improving deal wins and AI revenue growth, or does the Infosys guidance trim signal that broader demand headwinds are not yet resolved? The next data point comes from Wipro's management commentary at its AGM this week, which may give further colour on the demand outlook for the second half of FY27.