Infosys Provides Silver Lining As Indian IT Stocks See Broad EPS Downgrades

However, amid the general trend of downgrades, industry bellwether Infosys emerged as a standout performer. The company's 12-month forward EPS was upgraded by a substantial 19.3%, a significant positive divergence from its peers. This upgrade can be attributed to strong quarterly performance and the fact that the company lifted its revenue guidance for the current financial year to 3–4% when analysts were expecting it to be maintained at 1–3%. TCS also managed a minor upgrade of 0.1%.

The overall Nifty IT saw a modest upgrade of 3.2% in its 12-month forward EPS. This positive change, however, is largely driven by Infosys' remarkable upgrade. Without Infosys' contribution, the index would have likely experienced a downgrade, reflecting the broader struggles within the sector.

In fact, analysts already see Infosys as the best strategy to play the revival in the Indian technology space following the guidance upgrade and positive first-quarter earnings.

While Infosys' robust performance has cushioned the index overall, the widespread downgrades signal caution for the sector's near-term outlook.

Investors will be keenly watching upcoming earnings of Coforge, Mphasis and Tech Mahindra this week to gauge the sector's growth trajectory.