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Nifty IT rebounds 8% from April lows; all eyes on Wipro results for next triggerAccording to analysis by BNP Paribas, the underperformance of Nifty IT relative to the Nasdaq had reached near historical troughs in March 2026.By Meghna Sen  April 15, 2026, 12:15:46 PM IST (Published)2 Min ReadThe Nifty IT index has staged a notable recovery, rising 8% since April, even as the sector continues to grapple with deep cuts over the past year. Despite the recent rebound, the index remains down 23% on a one-year basis.

The recovery appears to be driven by a mix of positioning and valuation comfort.

According to analysis by BNP Paribas, the underperformance of Nifty IT relative to the Nasdaq had reached near historical troughs in March 2026.

Ownership trends also point to a potential reversal. Foreign institutional investor exposure to information technology services has dropped to near all-time lows of around 6% as of March 2026, while domestic institutional ownership has also declined sharply to 6.6% from 14% earlier.

A sharp depreciation in the rupee has further provided a cushion to margins.

Cos/Current FY28E P/E/Pre-Covid Range/Post-Covid HighsTCS15-15.5x20-22x30-32xInfosys16.5x18-20x28-30x

Valuations, meanwhile, remain well below historical peaks. Tata Consultancy Services (TCS) is currently trading at 15-15.5 times its estimated financial year 2028 earnings, compared to 20-22 times in the pre Covid period and highs of 30-32 times post Covid.

Similarly, Infosys is valued at around 16.5 times, versus its pre Covid range of 18-20 times and post Covid peaks of 28-30 times.

While near term triggers such as currency tailwinds and positioning are supporting the rebound, longer term uncertainty around global demand and technology spending persists.

What to watch

Investors will now turn their focus to earnings and guidance for further cues. Wipro is set to report results on April 16, with the Street closely watching for any buyback announcement and guidance for the first quarter of FY27.

The company has also been active on the deal front. It recently secured a $1 billion, eight year strategic transformation deal with Olam Group, which includes the acquisition of a 100% stake in Mindsprint for $375 million.

In addition, Wipro has signed an agreement to acquire select customer contracts from Alpha Net Consulting LLC for up to $70.8 million.

With inputs from Reema TendulkarContinue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsNifty ITNifty IT indexwipro resultsWipro share price