5 Stocks to Sell: Brokerages Flag Up to 25% Downside in Persistent, HCL Technologies and Other Stocks Indian equity benchmarks rose on Monday, with the NIFTY 50 gaining 0.84% to 24,099.25 and the BSE Sensex climbing 0.88% to 77,338.66. The broader market showed positive sentiment, driven by buying in select sectors. Nifty Realty, Nifty IT, and Nifty Pharma stocks outperformed the benchmark indices, while Nifty Private Bank and Nifty Financial Services lagged, limiting overall gains. Amid this mixed market environment, several brokerages issued ‘Sell’ recommendations on specific stocks, citing valuation concerns, uneven earnings visibility, and sector-specific challenges. Zensar Technologies Ltd came under scrutiny after BOB Capital Markets reiterated its ‘Sell’ call, highlighting rising competitive intensity in the IT services sector. The brokerage set a target price of Rs 488, implying a 10% downside from the current market price of Rs 542.90. It noted that the company’s Q4 FY26 performance fell short of expectations, primarily due to weakness in the TMT (technology, media, telecom) segment and delayed booking of a major deal. The firm warned that continued pricing pressures and heightened competition could dampen near-term growth prospects. Cyient Ltd also faced a ‘Sell’ rating from Motilal Oswal, which pointed to uneven growth despite signs of business stabilization. The brokerage set a target price of Rs 830, indicating a 6% downside from the current price of Rs 883.15. Cyient’s DET (Digital, Engineering, and Technology) business reported Q4 FY26 revenue of USD 163 million, down 2.4% quarter-on-quarter in constant currency terms, missing its 2.1% growth target. While the company showed early stabilization, the brokerage emphasized that growth visibility remains inconsistent.#motilal_oswal #zensar_technologies_ltd #bob_capital_markets #cyient_ltd #persistent_systems_ltd
