Business

Infosys, TCS, TechM and other IT stocks rally up to 5% even as sector valuations near 2008 levels

Published

2 months ago

19 May 2026

Infosys, TCS, TechM and other IT stocks rally up to 5% even as sector valuations near 2008 levels

Shares of Indian IT companies, including Infosys and TCS, jumped up to 5% on Tuesday, extending their rebound from the previous session. The momentum in IT counters comes after a sharp correction that has dragged sector valuations closer to levels last seen during the 2008–09 subprime crisis.
The Nifty IT index jumped more than 4% to hover near 29,566 on Tuesday morning, while the broader Nifty index was trading with only marginal gains. The sectoral index has now gained more than 8% (over 2,205 points) in just three sessions.

Heavyweight Infosys shares were the top gainers on the index, jumping nearly 5% to trade at Rs 1,198 apiece on NSE. Shares of the IT major have now risen about 9% over the past three days, but remain down 27% in 2026 so far and 10% over the past month.

Coforge, LTI Mindtree, HCL Technologies, Mphasis, Persistent Systems and Tech Mahindra shares jumped around 4% each on Tuesday, while OFSS and Tata Consultancy Services (TCS) shares surged more than 3% each. Wipro shares rose over 2%.

AI shock makes IT valuations cheaper

Shares of TCS, Infosys, HCL Tech and Wipro are currently trading with price to earnings (P/E) ratios ranging between 15 and 19, nearly half of the peak valuations that these IT stocks once commanded around four years ago.

These stocks saw a sharp decline early in 2026 after AI startup Anthropic launched plug-ins for its Claude Cowork agent, which could automate tasks across legal, sales, marketing and data analysis. “We call it the ‘SaaSpocalypse,’ an apocalypse for software-as-a-service stocks,” Bloomberg quoted Jeffrey Favuzza from the equity trading desk at Jefferies as saying.
While the doomsday prophets continue to debate about the future of the IT companies following fresh AI advancements, investors were quick to analyse the cheap valuations. Additionally, a sharp decline in the rupee also helped the IT stocks, as the IT companies mostly derive their revenue in US dollars.

Goldman Sachs on Infosys

Goldman Sachs kept a ‘Neutral’ rating on the shares of Infosys, with a target price of Rs 1,290 apiece. This implies an upside potential of nearly 13% from the stock’s previous closing price. The firm, in a note, highlighted key takeaways from Infosys’ management meeting.

Despite a soft discretionary spending environment, Infosys management highlighted strength in BFSI and EURS verticals and continued strong deal wins, Goldman Sachs noted, adding that some AI-driven deflation is likely in parts of the value chain, although Infosys expects it to be offset as new TAMs open up.

Also read: Why 10 stocks suffered massive Rs 17,000 crore mutual fund selloff in April

Infosys sees scope for a partnership approach with frontier model companies as enterprises deploy AI, rather than services companies being rendered redundant due to AI adoption, Goldman Sachs further said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Business

M-cap of 6 of top-10 most valued firms surges Rs 1 lakh cr; Airtel, Bajaj Fin top winners

Published

6 minutes ago

5 July 2026

NewsAdmin

M-cap of 6 of top-10 most valued firms surges Rs 1 lakh cr; Airtel, Bajaj Fin top winners

The combined market valuation of 6 of the top-10 most valued firms surged by Rs 1 lakh crore last week, with Bharti Airtel and Bajaj Finance emerging as the biggest gainers, amid a largely positive trend in equities.

Last week, the BSE benchmark Sensex climbed 663.44 points, or 0.86 per cent, and the NSE Nifty rose 214.85 points, or 0.89 per cent.

Markets ended the week on a firm footing, supported by resilient domestic macroeconomic indicators, healthy GST collections and improving industrial activity, Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

“Expectations of a more accommodative global monetary policy following softer-than-expected US labour market data further strengthened investor sentiment,” he added.

The market valuation of Bharti Airtel jumped Rs 36,529.21 crore to Rs 11,63,877.30 crore, the most among the top-10 firms.

Bajaj Finance added Rs 33,059.83 crore, taking its valuation to Rs 6,43,141.36 crore.
ICICI Bank‘s valuation surged Rs 16,084.29 crore to Rs 10,11,695.03 crore, and that of Life Insurance Corporation of India (LIC) climbed Rs 8,601.99 crore to Rs 5,44,139.55 crore.The market capitalisation (mcap) of HDFC Bank rallied Rs 7,664.89 crore to Rs 12,33,646.33 crore, and that of Hindustan Unilever edged higher by Rs 6,461.38 crore to Rs 5,17,086.30 crore.

However, the mcap of Larsen & Toubro tumbled Rs 26,572.2 crore to Rs 5,53,978.63 crore.

The mcap of Reliance Industries eroded by Rs 18,945.56 crore to Rs 17,64,981.36 crore, and that of State Bank of India (SBI) declined by Rs 4,846.08 crore to Rs 9,59,891.92 crore.

The market valuation of Tata Consultancy Services (TCS) dipped by Rs 1,031.15 crore to Rs 7,57,175.27 crore.

Reliance Industries remained the country’s most valued firm, followed by HDFC Bank, Bharti Airtel, ICICI Bank, SBI, TCS, Bajaj Finance, Larsen & Toubro, LIC and Hindustan Unilever.

Business

Safran: I Forecast It Will Follow Rheinmetall Down (OTCMKTS:SAFRY)

Published

13 minutes ago

5 July 2026

NewsAdmin

Safran headquarters building in Paris, France

Wolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets, and the owner of Wolf of Value, a service focusing on international dividend-paying value investments.He further covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FINMY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment.

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Business

This Bull Market Should Charge Into 2027

Published

19 minutes ago

5 July 2026

NewsAdmin

ITWO: Russell 2000 Covered Call Strategy That Outperforms Its Peers (BATS:ITWO)

Lawrence Fuller has been managing portfolios for individual investors for 30 years, starting his career at Merrill Lynch in 1993 and working in the same capacity with several other Wall Street firms before realizing his long-term goal of complete independence when he founded Fuller Asset Management. He also manages the Focused Growth portfolio on the new fintech platform called Dub, which is the first copy-trading platform approved by securities regulators in the US, allowing retail investors to copy the portfolio and ongoing trades of the manager they choose automatically. You can also find him on Substack and lawrencefuller.substack.com.He is the leader of the investing group The Portfolio Architect, which focuses on an overall economic and market outlook that complements an all-weather investment strategy designed to produce consistent risk-adjusted market returns. Features include: Portfolio construction guidance, access to an “All-Weather” model portfolio and a dividend and options income portfolio, a daily brief summarizing current events, a week ahead newsletter, technical and fundamental reports, trade alerts, and 24/7 chat. Learn More.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of RSP, IWM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Lawrence Fuller is the Principal of Fuller Asset Management (FAM), a state registered investment adviser. He is also the manager of the Focused Growth portfolio on the copy-trading platform Dubapp.com. Information presented is for educational purposes only intended for a broad audience. The information does not intend to make an offer or solicitation for the sale of purchase of any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. FAM has reasonable belief that this marketing does not include any false or material misleading statements or omissions of facts regarding services, investment, or client experience. FAM has reasonable belief that the content as a whole will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances or market events, nature and timing of investments and relevant constraints of the investment. FAM has presented information in a fair and balanced manner. FAM is not giving tax, legal, or accounting advice.
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