Citi's cautious stance on Indian IT despite a 20% decline; two preferred stocks highlighted

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Citi Cautious on Indian IT Despite 20% Fall, Prefers Infosys, HCL Tech

Citi Cautious on Indian IT Despite 20% Fall, Prefers Infosys, HCL Tech

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CNBC TV18•02-03-2026, 08:43

Citi Cautious on Indian IT Despite 20% Fall, Prefers Infosys, HCL Tech

•Citi maintains a cautious stance on the Indian IT sector, cutting target multiples due to higher risks to medium-term growth.
•The Nifty IT index has corrected 19% year-to-date, underperforming the Nifty by 16%.
•Citi prefers Infosys and HCL Technologies among large-cap names, despite reasonable valuations and FCF yields.
•CLSA notes Salesforce's moderated growth guidance but highlights stronger growth projections from IT services firms like Cognizant and Capgemini.
•CLSA suggests AI is creating a net positive volume opportunity for system integrators, allowing them to gain share from SaaS providers.

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