IT stocks in focus after Oracle’s strong results; Nuvama says valuations now attractive after correction

Shares of Indian IT companies are expected to attract investor attention following Oracle's robust quarterly performance, which exceeded market expectations and resulted in a 9% surge in its stock price. Oracle reported a total revenue of $17.19 billion for the third quarter of fiscal year 2026, surpassing analysts' forecasts of $16.91 billion. The company also raised its revenue outlook for fiscal 2027 to $90 billion, reinforcing its position in the competitive cloud infrastructure market. Nuvama Wealth Management expressed optimism regarding Indian IT stocks, stating that recent corrections have made their valuations appealing. Despite concerns regarding the impact of generative AI on the sector, Nuvama argued that the need for IT services firms to integrate and customize software solutions will persist. The firm highlighted that fears surrounding the IT industry’s future are exaggerated, emphasizing that while generative AI may disrupt certain aspects, it does not pose an existential threat. This positive sentiment was reflected in the early trading on Wall Street, although gains moderated amid geopolitical uncertainties. Overall, the Indian IT services sector is navigating a critical juncture, with technological advancements reshaping its operational landscape.