Dalal Street is in the green territory today (March 20), with bulls taking control. The Nifty IT index surged nearly 2%, with almost all its constituents trading in the green. The strength across the technology sector stocks does not just reflect the market mood today but something deeper as well.
The Accenture management commentary overnight, accompanied by the bigger shift driven by AI, global demand trends and steady deal wins, helped the positive sentiment. Furthermore, the brokerage house, Nomura, in its latest report, has identified stocks that are better placed to benefit from this shift.
Let’s take a look at the stock the brokerage is bullish on and it outlook towards the sector
Nomura’s picks: The top tech sector bets
Nomura remains selective but positive on the Indian Information Technology services space.
It prefers large cap companies like Infosys and Cognizant, while also highlighting midcap Coforge and small-cap eClerx as key picks.
The brokerage believes that demand in the financial services segment continues to hold up well.
Nomura noted, “We expect the growth momentum in the financial services vertical to continue in the near-term for Indian IT services.”
At the same time, artificial intelligence is becoming a major driver of future growth.
“We also expect AI projects to start becoming bigger as clients move from POC to live projects,” according to the brokerage report.
AI, deals and global cues shaping the outlook
A key trigger behind this optimism comes from global trends, especially insights drawn from Accenture’s recent performance. The company reported revenue of $18.04 billion in the second quarter of FY26, growing 4% year-on-year in constant currency terms.
According to the brokerage report, deal activity remains strong. “Order bookings in Q2FY26 were at $22.1 billion (+6% YoY), including 41 clients with more than $100 million deal,” the report noted.
Artificial intelligence continues to play a central role in this growth story. “AI will act as a tailwind,” the report said, explaining that companies are not just experimenting anymore but are actively investing in large-scale programs. Clients are increasingly spending on cloud computing, data modernisation, and digital platforms, all of which are essential for artificial intelligence adoption.
Another important trend is the shift in client behaviour. As per the brokerage report, “There is a shift from proofs of concept (POC) to production.”
What could hold back growth
Nomura’s report also noted that global economic conditions remain a key factor.
The report added, “A sharp growth revival hinges on macroeconomic improvement particularly in the US.”
There are also external uncertainties, including geopolitical tensions. The report pointed out that demand conditions remain largely similar to last year, with clients being cautious while finalizing budgets.
Still, some positives remain. The financial services segment continues to grow steadily, and partnerships with global technology ecosystems are helping companies expand their capabilities. According to the brokerage report, such partnerships account for a significant portion of revenues and are growing faster than overall business.
What investors need to know
Artificial intelligence, large deal wins, and steady demand from key sectors are shaping the future of the industry.
The focus is now shifting from just growth numbers to the quality and sustainability of that growth.
In a similar trend, brokerage firm Nuvama has also turned positive on the top IT services companies, upgrading several stocks and maintaining a ‘Buy’ rating on key players.