IT Stocks Plunge Ahead of Q3 Results; TCS Leads Nifty IT Decline

• IT stocks, including majors like TCS, Infosys, HCLTech, and Tech Mahindra, are trading with losses ahead of their Q3 earnings reports next week.
• The Nifty IT index fell nearly 2% on Thursday, with TCS and Infosys being top contributors to the Nifty 50's downside.
• Oracle Financial Services Software Ltd. was the top loser on the Nifty IT index, down almost 3%, while HCLTech was the only gainer.
• Brokerage firm Jefferies warned of potential earnings downgrades for Indian IT stocks in FY27, impacting price-to-earnings multiples.
• CLSA turned cautious on the Indian IT sector, recommending reducing positions due to expected soft Q3 earnings and downgrading HCLTech and Tech Mahindra.

Why It Matters: Indian IT stocks face significant decline and cautious outlook ahead of anticipated soft Q3 earnings.