Now Reading: IT stocks fall on H-1B concerns, broker downgrades
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IT stocks fall on H-1B concerns, broker downgrades
TCS, Infosys, and LTM shares fell after the US H-1B fee proposal cleared a White House review, and brokerages downgraded the stocks. The Nifty IT index dipped 1% on Friday, and was down over 3% on a weekly basis.
Kotak Institutional Equities downgraded TCS and Infosys to 'add' from 'buy', and LTM to 'sell' from 'reduce', citing industry headwinds and near-term growth concerns. CLSA also downgraded Infosys, TCS, and Tech Mahindra to 'hold' from 'outperform', citing AI-led deflation and macroeconomic headwinds.
Both brokerages are more positive on mid-tier IT firms. CLSA raised target prices for Persistent Systems, Coforge, LTM, and Hexaware. The Nifty IT index closed lower on Friday.
Indian Opinion Analysis
Both ndtvprofit.com and thehindubusinessline.com reported the IT stock fall as a market story driven by broker downgrades. Neither source adopted a pro-government or critical stance, instead focusing on the analyst views from Kotak and CLSA. Ndtvprofit.com led with the H-1B fee proposal as a trigger, while thehindubusinessline.com emphasised the broader sectoral decline and multiple downgrades. The coverage is uniform straight reporting, with no editorial slant. Investors should watch for further US policy announcements and the next round of quarterly results to see if the downgrades lead to sustained selling pressure.
Coverage: 2 sources, 2 neutral
Sources (2): ndtvprofit.com (neutral report), thehindubusinessline.com (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
