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IT crash ahead? CLSA downgrades TCS, Infosys, Wipro, other stocks; revises target prices. Here’s why

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IT crash ahead? CLSA downgrades TCS, Infosys, Wipro, other stocks; revises target prices. Here's why
While AI jitters continue to keep IT investors on edge, CLSA downgraded several heavyweight stocks and revised their target prices, although it remains bullish on several mid-tier IT vendors.

CLSA, in its latest note, highlighted that Q1 earnings were a mixed bag for Indian IT and global peers. Basic Excel math does imply that AI volumes could supersede deflation by FY30, taking USD revenue growth from low to mid-single digits, the international brokerage said.

Given long gestation time and limited potential upsides, CLSA downgraded its rating on the shares of Tata Consultancy Services (TCS), Infosys and Tech Mahindra to ‘Hold’, and that on Wipro and Mphasis to ‘Underperform’, due to structural concerns.

CLSA revises target prices for TCS, Infosys

For Infosys, CLSA however hiked its target price to Rs 1,147 apiece from Rs 1,109 apiece. The latest target price implies around 3% upside potential from the heavyweight IT stock’s previous closing price of Rs 1,115 apiece.
It also hiked target price for TCS to Rs 2,326 apiece from Rs 2,165 apiece, implying 2% upside potential, while it reiterated a target price of Rs 1,634 per share for Tech Mahindra, implying 3% upside potential.

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CLSA sees 15% downside potential in Wipro shares

Wipro shares however faced a target price cut along with the rating downgrade to ‘Underperform’, with CLSA reducing its forecast to Rs 152 apiece from Rs 157 apiece. The latest target price implies 15% downside potential from the stock’s previous closing price of Rs 178 apiece.
CLSA meanwhile has a target price of Rs 2,113 apiece for the shares of Mphasis, implying over 13% downside potential.The international brokerage however sees mid-tier IT vendors in a better position to take advantage of these tectonic changes, with good quality management teams and execution. Hence, it reiterated its ‘High Conviction Outperform’ rating on Coforge and Persistent Systems. It also reiterated its ‘Outperform’ rating on LTI Mindtree and Hexaware Technologies.

Also read | Is market heading towards a big AI crash like the dot-com crisis? Here’s what European Central Bank predicts

How did IT stocks react?

IT stocks however bucked worries to snap a losing streak and trade in the green, despite an overall muted market sentiment favouring the bears. Nifty IT gained over 1% to cross 30,560 on Wednesday morning to emerge as the top sectoral gainer.

Coforge, Persistent Systems and HCL Tech shares jumped around 2% to lead gains, while LTI Mindtree, Infosys, and Wipro shares gained around 1% each. Mphasis, Tech Mahindra and TCS shares traded in the green with marginal gains.

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IT stocks have seen sharp upswings and downswings recently. Earlier this year, the sector witnessed a sharp selloff after breakthroughs by AI startups fuelled concerns about potential disruption to the traditional IT services business model. Later, a sharp selloff in global tech leaders proved to be a blessing in disguise for Indian IT stocks, which emerged resilient amid the global tech rout.

Also read | Sensex falls 100 points, Nifty below 23,150 as market bleeds for 7th session. What lies ahead?

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

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Asara divests project stake

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Asara divests project stake

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ChatGPT for teens adds study mode, parental controls and safety tools

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ChatGPT for teens adds study mode, parental controls and safety tools

ChatGPT-maker OpenAI on Tuesday announced that it’s creating a new portal for teenagers between the ages of 13 and 17 as it looks to address concerns about online safety for young people.

The company made the announcement exclusively on-air with Fox News’ “Fox & Friends” on Tuesday morning and outlined how the platform looks to address the potential for the misuse of the platform by children.

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The ChatGPT for Teens portal will serve as the default experience on the artificial intelligence (AI) chatbot for users between the ages of 13 and 17 and will come with new safeguards aimed at fostering the safe use of the platform and supporting teens’ critical thinking skills.

OpenAI said that most teen users of ChatGPT use it for homework and help with their studies, so the new platform is intended to allow for study aides without giving the answers away and was designed with Stanford University.

OPENAI UNVEILS CHATGPT WORK TO AUTOMATE WORKPLACE TASKS AS AI RACE INTENSIFIES

OpenAI ChatGPT Screen

OpenAI’s new ChatGPT for Teens platform has safeguards tailored to ensuring the safety of young people using the platform. (Jaap Arriens/NurPhoto via Getty Images)

It will feature quizzes and responsible-homework reminders that redirect teens toward collaborative problem-solving, as well as a Study Hours feature that allows teens or parents to set Study Mode as a default during certain time periods.

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The new platform includes stronger default safeguards addressing self-harm, violence, eating disorders, dangerous activities and explicit sexual or graphic content through age-appropriate interventions.

There will be teen-specific onboarding to the platform with warnings that discourage users from uploading private or sensitive images.

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OpenAI CEO Sam Altman

OpenAI and CEO Sam Altman have faced calls to add more safeguards for children on the platform. (Anna Moneymaker/Getty Images)

It also looks to address parental concerns about teens forming an emotional dependency or relationship with new safeguards barring the use of language that could suggest romantic feelings, as well as claims of sentience of personal feelings by ChatGPT.

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The platform will also restrict the chatbot from framing ChatGPT as being more important than family, friends, educators, mentors or other trusted people in the life of the tool’s teenage user.

The platform is also set to include default settings that provide more guardrails against the overuse of the program and healthier usage patterns.

OPENAI ROLLS OUT CHATGPT PARENTAL CONTROLS WITH HELP OF MENTAL HEALTH EXPERTS

OpenAI logo

OpenAI’s teen-oriented platform comes with default settings aimed at preventing the misuse of the tool. (Omar Marques/SOPA Images/LightRocket via Getty Images)

It will have default settings that encourage users to take breaks more frequently, along with reminders about the platform’s settings for Study Hours and Quiet Hours.

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Additionally, the new platform will provide the user with cues to reinforce that ChatGPT is a tool and not a person or a replacement for human relationships.

The new safeguards for OpenAI’s ChatGPT for Teens platform following incidents in which teenage users turned to the platform during mental health crises.

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Mark Walter may look to sell Chelsea for next move

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Mark Walter's insurer agrees to cut $6.5B in investments amid probe

Mark Walter, who already sold his majority stake in the Los Angeles Lakers just one year after purchasing the NBA team, might be selling off yet another sports asset. 

Walter and business partner Todd Boehly are reportedly looking to sell their stakes in Chelsea Football Club of the English Premier League, according to the Financial Times.

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Walter and Boehly are hoping to sell their stakes to Clearlake Capital, the majority owner of one of the most popular soccer teams in the entire world. 

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Mark Walter in seats

Mark Walter, CEO of Guggenheim Partners, and Ilana Kloss attend day 13 of the French Open 2022 held at Stade Roland Garros on June 3, 2022, in Paris, France. (Jean Catuffe/Getty Images / Getty Images)

Clearlake Capital reportedly has had some friction with the two minority stakeholders after they purchased a piece of the club four years ago. The outlet reported there have been negotiation talks for years between both sides, but no deal was made. 

Walter and Boehly bought stakes in Chelsea in May 2022, as BlueCo, a consortium run by Boehly, and Clearlake Capital bought the club from Roman Abramovich. 

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BUSS FAMILY AGREES TO SELL REMAINING LAKERS OWNERSHIP STAKE TO JOSH KUSHNER, BOB IGER GROUP

The news is quite interesting, though, as Walter agreed to sell the Lakers to Josh Kushner and Bob Iger for a record $12.5 billion after just purchasing the ownership stake from the Buss family for $10 billion last year. 

In June 2025, the Buss family decided to sell the Lakers to Walter for $10 billion. There was, however, some in the Buss family who felt misled by Jeanie Buss in what they characterized as a rushed sale, per ESPN. They felt pressured to vote for the sale to go through. 

Mark Walter clapping

Mark Walter of the Guggenheim Baseball Management group, applauds a speech by partner Earvin “Magic” Johnson at a press conference introducing them as new Dodgers owners in center field at Dodger Stadium. (Robert Gauthier/Los Angeles Times / Getty Images)

In the end, all six siblings said “yes” to the sale, which closed in October 2025. The sale gave each sibling $500 million post-tax. After the sale to Walter, Buss was allowed to remain the governor of the Lakers given the 17.8% ownership stake still intact. 

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Word came out Monday that the Buss family is now looking to tack onto the deal with Kushner and Iger to sell their remaining shares in the NBA team, which would give the new ownership group a whopping 83% majority in one of the most iconic basketball franchises in the world. However, new reports indicate Jeanie was the only sibling that did not wish to relinquish ownership, and will be fighting the decision made, per multiple outlets

Walter’s surprise sale of the Lakers comes amid a federal investigation into the Guggenheim Partners CEO. It was reported that the FBI recently seized Walter’s phone and laptop, as well as a high-ranking Guggenheim Investments executive’s this past year. 

Some are viewing the Lakers’ sale as a quick way to liquify assets for Walter with potential legal problems ahead, and now Chelsea could be yet another way to do so. 

Mark Walter at podium

Mark Walter, owner and chairman, Los Angeles Dodgers speaks during the unveiling ceremony of a brand new Koufax commemorative statue at the Centerfield Plaza at Dodger Stadium. (Jayne Kamin-Oncea-USA TODAY Sports / IMAGN)

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Chelsea was sold to the group for a total 2.5 billion pounds back in 2022. An extra 1.75 billion pounds was committed for future investment in the signature Stamford Bridge stadium, the Chelsea academy, the women’s team and the Chelsea Foundation. 

The current valuation of Chelsea is estimated to be around 5 billion pounds.

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Yorkshire wall panel firm Naturewall secures seven-figure HSBC funding

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Naturewall, which has bases in Beverley and Leeds, makes wooden wall panels and has appeared on Channel 4’s Grand Designs and BBC’s DIY SOS

L-R: Phil Brown (MD at Naturewall), Becky Young (Relationship Manager at HSBC UK), Maisie Callow (Commercial Manager at Naturewall), Jed Foster (Head of Operations at Naturewall)

L-R: Phil Brown (MD at Naturewall), Becky Young (Relationship Manager at HSBC UK), Maisie Callow (Commercial Manager at Naturewall), Jed Foster (Head of Operations at Naturewall)(Image: HSBC)

A Yorkshire firm that has graced the screens of both Grand Designs and DIY SOS is poised for expansion following a seven-figure funding agreement. Naturewall was founded in 2018 by Philip Brown and John Hallam, with the aim of helping homeowners and commercial clients revamp their spaces using nature-inspired wall panels.

Its timber wall panels are crafted at its workshops for use throughout the home, encompassing Victorian and Georgian style panels, waterproof shower panels, acoustic panels for sound absorption and slatted panels. The Beverley-based business, which also operates a base in Leeds, has grown to become the UK’s largest SlatWall manufacturer, bolstered by a thriving home improvement and interior décor sector.

Over the years, the company’s impressive wood panels have been used to enhance everything from gyms and salons to bathrooms and bedrooms, with its elegant designs also earning television appearances. The company has featured on Channel 4’s Grand Designs, as well as BBC’s DIY SOS, which joined forces with Naturewall to renovate the much-loved Cherry Tree Community Centre (CTCC) in Beverley, a local hub since 1993.

Now Naturewall, which employs 43 members of staff across its two Yorkshire locations, has secured an HSBC UK funding deal to bolster its stockholding capacity. Company bosses confirmed the investment will drive future growth ambitions by broadening and diversifying its panel range.

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As part of its ongoing growth strategy, the firm has successfully broadened its retail partnerships throughout the UK, including an exclusive Made in Britain supply agreement with one of the country’s largest national kitchen, bedroom and bathroom retailers. With capacity bolstered by HSBC UK funding, Naturewall’s leadership team is forecasting a 30 per cent rise in turnover over the next 12 months, reports Hull Live.

Philip Brown, managing director of Naturewall, said: “Securing funding and increasing our working capital flexibility is an important milestone for the business. The steps we are taking today strengthen our ability to deliver new innovations in products, while scaling the availability of our products for customers and ensuring consistent standards of service.”

Becky Young, relationship manager at HSBC UK, added: “It’s fantastic to support Naturewall achieve this ambitious phase of growth. As the business expands its product portfolio and stock holding capabilities, it will continue to develop as a leading Made in Britain UK accredited manufacturer. We look forward to seeing how this funding supports the future success of the business in the UK and overseas.”

The HSBC UK-funded acquisition was facilitated through an introduction by Chris Mangle, director at Custom Business Finance.

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ADI Stock: Analog Devices Tops Fiscal Q3 Views On Data Center, Industrial Sales

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ADI Stock: Analog Devices Tops Fiscal Q3 Views On Data Center, Industrial Sales

Chipmaker Analog Devices on Wednesday easily beat estimates for its fiscal third quarter and with its outlook for fiscal Q4. ADI stock rose on the news. The Wilmington, Mass.-based company earned an adjusted $3.45 a share on sales of $4.02 billion in the quarter ended Aug. 1. Analysts surveyed by FactSet had expected earnings of $3.34 a share on sales of…

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Launch date for new coach service between north and south Wales

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TaithCymru will operate between Bangor and Carmarthen

A TaithCymru coach.

A new north to south Wales coach service will launch in October.

Operating by Transport for Wales the new TaithCymru route will run two ways from Bangor to Carmarthen

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The daily service, which will start on October 25th, will also stop at Caernarfon, Porthmadog, Dolgellau, Machynlleth, Aberystwyth and Aberaeron, cutting journey times by more than an hour.

TaithCymru is one of the Welsh Government’s 100-day commitments and forms part of its wider ambition to build a more integrated, multimodal public transport network across Wales.

Deputy Minister for Transport, Mark Hooper said: “I am delighted that we have delivered on our 100-day commitment to prepare to launch a new coach service linking the north and the south of Wales.

“Transport for Wales has worked at pace to deliver this scheme which I am pleased to announce will launch on 25 October.

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“TaithCymru plays a vitally important role in connecting towns and communities, making it a quicker, easier and more reliable way to travel to access work, education, and leisure.

Lee Robinson, executive director for regional transport and integration at Transport for Wales, said:“TaithCymru represents a major step forward in improving connectivity between north and south Wales.

“This new service will provide faster, more convenient and more sustainable journeys, helping people access employment, education, healthcare and leisure opportunities while supporting our wider ambition of creating a truly integrated public transport network for Wales.

“TaithCymru is a great example of what can be achieved when we come together with a shared vision to improve transport for communities across the country.”

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TJX earnings beat by $0.03, revenue topped estimates

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TJX earnings beat by $0.03, revenue topped estimates

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Nebius plans $4.5 billion convertible notes offering

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Nebius plans $4.5 billion convertible notes offering

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Sun Belt cities dominate 2026 best housing markets, Texas leads list

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Sun Belt cities dominate 2026 best housing markets, Texas leads list

The American dream of owning a home may be getting harder to achieve in some of the country’s biggest cities, but new data suggests it remains alive and well in parts of Texas and the Sun Belt.

According to WalletHub’s 2026 Best Real Estate Markets report released Wednesday, Frisco, Texas, took the top spot and was followed by neighboring McKinney, Texas. Murfreesboro, Tennessee; Durham, North Carolina; and Denton, Texas, rounded out the top five.

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Other top 10 contenders include Cary, North Carolina; Madison, Wisconsin; Allen, Texas; Charlotte, North Carolina and Irvine, California.

“Texas and other Sun Belt markets dominate the top of the ranking, highlighting the combination of housing-market strength and helpful economic conditions found in many of these cities,” WalletHub writer and analyst Chip Lupo told Fox News Digital. “These markets tend to perform well across factors such as home-price appreciation, new housing construction, building-permit activity, affordability and job growth.”

CALIFORNIA LOSES FORTUNE 500 CROWN TO TEXAS AS BILLIONAIRE TAX THREAT LOOMS

“Nearly 47% of the housing units in Frisco, the No. 1 market overall, were built between 2010 and 2024 … McKinney, ranked No. 2, has a 40% new-home rate, the 10th-highest building-permit activity and one of the best job growth rates,” Lupo said.

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US and Texas flags fly over starter homes

Texas cities consistently ranked in the top 10 spots for the best real estate markets in America, according to new WalletHub data. (Getty Images)

“By comparison, many large coastal markets rank considerably lower overall, including New York at No. 231, Los Angeles at No. 237 and San Francisco at No. 273. Their relatively weak rankings reflect a combination of housing-market challenges and poor affordability and economic-environment scores,” he continued.

The study weighs underlying housing-market health and market trajectory more heavily than affordability alone in ranking the 300 U.S. cities, with cities needing a combination of healthy housing fundamentals and economic conditions that could support homeowners over the longer term to rank highly.

“Taxes are certainly part of the equation, but the ranking points more broadly to the combination of housing conditions and economic strength rather than taxes alone,” Lupo said.

Aerial view of homes in McKinney, Texas

McKinney, Texas, took the No. 2 spot for America’s best real estate markets. (Getty Images)

“By contrast, major coastal markets rank far lower. Those markets may offer high incomes and economic opportunity, but their housing costs can make it much harder for residents to translate those opportunities into homeownership. The biggest, most popular cities are on everyone’s radar,” he said, “so their housing markets have been competitive for a long time, and they continue to be. The entry point is therefore more expensive, and there might not be as much room for growth.”

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“The contrast with expensive coastal cities is less about simply building more homes and more about whether housing supply can keep pace with demand. When new construction consistently falls behind population and job growth, affordability pressures become much harder to overcome,” Lupo said.

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New Orleans Bourbon Street in New Orleans famed French Quarter neighborhood

Bourbon Street in New Orleans’ famed French Quarter neighborhood. (Getty Images)

New Orleans ranked last in the report, followed by Baltimore. Lupo said this is a “warning sign” that goes beyond home prices.

“Homeowners shouldn’t assume further deterioration is inevitable, but these rankings are a reason to be cautious,” he said. “Markets with weak housing fundamentals can experience slower home-price growth, weaker market activity and greater difficulty attracting buyers, which can make it harder for homeowners to build equity or sell quickly.”

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India stocks top Indonesia as Asia’s least-favoured in BofA poll

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India stocks top Indonesia as Asia’s least-favoured in BofA poll
India has replaced Indonesia as Asia’s least-preferred stock market in a survey of fund managers by Bank of America Corp., signalling growing caution toward a market that’s among the world’s worst performers this year.

The lack of a clear AI exposure remains the key concern for Indian equities, with weak growth emerging as the next most important risk, according to the survey, which showed 32% of the respondents were net underweight on the nation. Lack of reforms and high valuations also emerged as reasons for the bearish outlook on Asia’s fourth-largest equity market.

In contrast, sentiment improved for Indonesia, with 27% of the fund managers saying they were net underweight on the market, compared with 32% in July. Taiwan and Japan remain investors’ most preferred regions. A total of 98 panellists with $272 billion of assets responded to the survey’s questions between Aug 7 and Aug 13.

1Bloomberg

The survey findings align with a decline in Indian stocks over the past two weeks despite an improving earnings outlook, suggesting investors remain wary of the market even as its fundamentals strengthen.
Global funds have purchased more than $4 billion in local stocks this quarter — the most among regional emerging markets — after record outflows in the first half of the year, data compiled by Bloomberg show. Earnings for benchmark NSE Nifty 50 members jumped 18% from last year in the most recent three-month period, ahead of Motilal Oswal Financial Services Ltd.’s estimate of 10% growth.


Indian stocks were last termed the least preferred in the BofA poll in May, as the country faced pressure on growth from rising energy costs following the US-Iran war that triggered a rally in global crude oil prices. With no sign of progress toward resolving the conflict, energy prices are climbing again, weighing on investor sentiment.
While the Nifty 50 has jumped 8% from a recent low in March, it remains the second-worst performing major market in Asia this year, having lost 8%. It’s on track to snap a historic run of 10 straight years of annual gains.Meanwhile, the improvement in sentiment for Indonesia reflects the more than 20% rally in the benchmark Jakarta Composite Index from a June low, following the central bank’s measures to stabilise the currency and fading fears of a downgrade to frontier-market status by MSCI Inc.

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

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