The stock market is currently in the midst of the Q1 FY2026 earnings season, and two key sectors which often shape market sentiment – Information Technology and Retail — find themselves at a crossroads.

According to market analysts, the retail sector maintains its momentum through consumption growth even though profit margins face challenges. There are, however, no such visible tailwinds for the IT sector during these times. Hence, such divergent earnings pressures could present selective opportunities rather than sector-wide calls.