Explained - The CLSA optimism that triggered a sharp upmove in Indian IT on Monday

The latest quarterly results of tech companies show that AI has not negatively impacted the software as a service (SaaS) demand yet, as per a recent note by brokerage firm CLSA.

The brokerage released a note titled "How Much of SaaSpocalypse Is Real" on May 30, 2026.

It stated that most SaaS companies have maintained or raised their guidance, post their recent results, and beat consensus estimates on the earnings per share (EPS). Here are a few instances

• SAP: CLSA said the company maintained its 12% - 13% constant currency growth guidance.


• Snowflake: The company has raised guidance from the previous 27% to 31%, CLSA said.


• Salesforce: The company has maintained 10% - 11% constant currency, the brokerage stated.


• ServiceNow: The firm has raised its guidance from 20.5% - 21% to 22% - 25%, CLSA added.

This trickles down to Indian IT firms due to their partnerships with these US-based firms

• Infosys-SAP


• LTIMindtree-ServiceNow


• Hexaware-GuideWire


• Birlasoft, Persistent Systems- Snowflakes

CLSA stated that SaaS could be anywhere between 10% and 25% of their overall revenues.

Strong SaaS company results show continued healthy demand for product engineering and implementation-related work, the brokerage said.

It added that the SAP project delays for HCLTech and Wipro may be more related to client-specific issues.

As a result of this optimism, Indian IT stocks saw gains of anywhere between 2% to 4% on Monday, becoming the only sectoral index that lent some support to the benchmark index while most other sectors underperformed.

Shares of Persistent Systems and Tech Mahindra were the top gainers on the Nifty IT index on Monday, gaining up to 4% each, while those of Infosys, LTM and Coforge gained between 3% to 4% as well on Monday.

All constituents on the Nifty IT index ended the session with gains on Monday.