Indian IT Stocks Surge on AI Deals and Valuations Indian IT stocks experienced a significant rally on Monday, outperforming the broader market as the Nifty IT index reached its highest level since April 23. The surge was attributed to attractive stock valuations and recent AI-related partnerships, which have rekindled investor interest and prompted traders to build fresh long positions. This rebound followed a period of underperformance for the sector in 2026, with the Nifty IT index declining over 21% year-to-date compared to a 10.5% drop in the benchmark Nifty. The Nifty IT index closed at its strongest level in nearly two weeks, gaining 2.7% on Monday, while the broader Nifty fell 0.7%. Tech Mahindra, Infosys, and L&T Technology Services rose 3.7% each, while Persistent Systems gained 3.6%. Coforge and Oracle Financial Services Software advanced 2.6% and 2.1%, respectively. Analysts noted that Indian IT firms are aligning with American companies like Anthropic and OpenAI by securing contracts and partnerships, which investors perceive as promising. Gaurav Sharma, head of research at Globe Capital, highlighted that Wipro’s expanded Agentic AI partnership with ServiceNow and Coforge’s acquisition of Encora have alleviated concerns about AI-linked disruption. These developments have helped stabilize the sector after a period of uncertainty. Sharma also pointed out that large-cap IT stocks like TCS and Infosys are trading near 16-17 times Price-to-Earnings (PE), while midcap companies such as Coforge, Oracle, and Mphasis are at 20-30 times PE, making them attractive for investors. Technical analyst Jay Vora of Mirae Asset Sharekhan observed that open interest in large-cap IT stocks has doubled in recent months, indicating a buildup of short positions.#infosys #nifty_it #tech_mahindra #persistent_systems #l_t_technology_services
5 Stock to Sell: Brokerages Recommend Sell on Trent, Tech Mahindra, and Others Tata Elxsi reported a steady performance in its fourth quarter of fiscal year 2026, with revenue growth and margins aligning with expectations. The company’s improved execution across key segments, including continued traction from original equipment manufacturer clients, stabilization in automotive demand, and recovery in the media and communication sector, were highlighted by ICICI Securities. Despite these positives, the brokerage maintained a “sell” rating on the stock, citing a target price of Rs 4,380. This price implies a potential downside of 3.5% from current levels, reflecting caution about the stock’s near-term outlook. Persistent Systems, on the other hand, faced a slightly softer-than-expected performance in Q4FY26, with both revenue and margins falling short of estimates. BOB Capital Markets acknowledged the near-term miss but emphasized the company’s strong growth trajectory, projecting a US$2 billion revenue run rate by the fourth quarter of FY27. While the brokerage reaffirmed its belief in Persistent Systems as a growth leader in the IT sector, it retained a “sell” rating with a target price of Rs 3,611. This price suggests a potential upside of 28.7% from current levels, indicating a cautious but optimistic stance on the company’s long-term prospects. Tech Mahindra delivered a largely in-line performance in Q4FY26, according to Citigroup. The brokerage noted that the company executed reasonably well despite a challenging industry environment. However, Citigroup maintained a “sell” rating on the stock, with a target price of Rs 1,275. This price is below the current market price of Rs 1,416, signaling a cautious outlook for the near term.#icici_securities #citigroup #tata_elxsi #bob_capital_markets #persistent_systems
