Overview

• Nuvama forecasts Nifty 50 earnings to rise about 8% year on year in Q2FY26, extending a run of subdued topline expansion.
• Sector performance is expected to diverge, with electronics manufacturing services, internet, telecom, NBFCs and cement stronger while IT and banks likely lag.
• Kotak projects a steadier IT quarter with 0.2–6% sequential revenue growth, supported by rupee depreciation and cost controls that help protect margins.
• Analysts highlight tighter U.S. H‑1B rules and tariff risks as key overhangs for tech exporters, with scrutiny on TCS’s planned layoff of 12,000 employees.
• Mid-tier IT firms such as Coforge and Persistent are expected to show relative strength on deal ramps and BFSI momentum, while festive demand and GST cuts may aid H2 without fully offsetting external headwinds.