What are Motilal Oswal's top IT stock picks?

Motilal Oswal's top picks in the Indian IT sector include large-cap companies Infosys and Tech Mahindra, and mid-cap companies Coforge and Hexaware Tech.

When is AI expected to significantly boost IT sector growth?

AI services are projected to drive a more meaningful acceleration in the IT sector starting from the second half of the financial year 2027 and FY28, with demand inflecting by calendar year 2026.

What is the expected growth for Indian IT companies in Q3?

For the third quarter, large-cap IT firms are expected to see 0.3% to 2.3% sequential growth in constant currency, while mid-caps are projected to grow between -2.5% and 3.5%.

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Infosys, TechM Lead Motilal Oswal's IT Buy List

5 Jan

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Summary

Motilal Oswal names Infosys, Tech Mahindra, Coforge, Hexaware as top IT stock picks.
Growth expected to remain steady until January 2026, with AI driving future acceleration.
Q3 IT growth projected between 0.3% and 2.3% for large caps, midcaps between -2.5% and 3.5%.

Infosys, TechM Lead Motilal Oswal's IT Buy List

Motilal Oswal's latest analysis highlights Infosys and Tech Mahindra as top large-cap IT stock choices, with Coforge and Hexaware Tech leading among mid-caps. The firm anticipates demand will remain steady, with incremental spending cautious until January 2026 due to client budget resets and uncertainty surrounding new technology cycles. A meaningful acceleration in the IT sector is projected for the second half of FY27 and FY28, propelled by scaled AI service deployments.

For the upcoming third quarter, Motilal Oswal forecasts modest sequential growth in constant currency terms, ranging from 0.3% to 2.3% for large-cap IT companies. Mid-cap firms are expected to demonstrate stronger performance, with growth estimates between -2.5% and 3.5%. This period is characterized by seasonal furloughs, which are expected to impact growth, but the market is looking beyond these short-term effects towards future demand signals.