14 Jul , 2026 By : Debdeep Gupta
HCL Technologies Ltd shares fell nearly 3 percent in early trade on Tuesday, reversing part of the previous session's sharp gains, as investors reacted to cautious brokerage commentary following the company's fiscal first quarter results. Citi had downgraded the stock to 'Sell' despite an earnings beat and unchanged full-year guidance.
HCLTech shares declined 2.7 percent to Rs 1,188 in early trade, making it the top loser on the Nifty 50. The stock had surged 5.15 percent on Monday ahead of the company's earnings announcement.
The weakness came even as HCLTech reported better-than-expected April-June quarter numbers, retained its FY27 constant currency revenue growth guidance of 1-4 percent and announced plans to invest Rs 3,500 crore in an AI data centre. The company also reported net new deal wins of $2.4 billion during the quarter, excluding its recently announced $1.14 billion AI infrastructure deal with Mercedes-Benz.
Brokerages broadly agreed that HCLTech delivered better-than-expected fiscal first quarter earnings, supported by resilient execution, strong deal wins and sustained momentum in AI-led business. They also viewed the company's decision to retain its FY27 revenue growth guidance as a positive surprise, while its planned AI data centre investment was seen as strengthening its long-term AI capabilities.
However, several brokerages remained cautious on the stock's valuation, arguing that HCLTech continues to trade at a premium to large-cap IT peers despite a relatively modest growth outlook. Some also flagged the possibility of a trim to the upper end of the company's FY27 revenue growth guidance later in the year, while citing slower software growth and macro uncertainty as key risks.
At 09:18 hrs IST, the Sensex was down 393.30 points, or 0.51 percent, at 77,223.10, while the Nifty fell 98.40 points, or 0.41 percent, to 24,112.60. Market breadth was negative, with 1,463 shares declining against 1,010 advances.
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