IT Q2 earnings to be a mixed bag; Coforge and eClerx shine among mid and smallcaps: Abhishek Bhandari, Nomura

Abhishek Bhandari of Nomura highlights a healthy growth pattern in IT midcaps like Coforge and Persistent despite overall sector slowdown. Divergent performances are expected in Q2, with stability in discretionary demand likely improving by FY26. Small and midcap stocks continue to attract investor interest, though valuations have risen. Market growth is expected to drive future earnings upgrades.