Major brokerage CLSA downgrades TCS, Infosys; optimist on some stocks: know details

CLSA has adopted a cautious stance on major Indian IT companies TCS, Infosys, Tech Mahindra, Wipro and Mphasis. The brokerage anticipates increased pressure from AI on traditional IT services businesses. Consequently, TCS, Infosys, and Tech Mahindra have been given a Hold rating, while Wipro and Mphasis have been given an Underperform rating.

Kolkata: Major brokerage from Hong Kong CLSA has adopted a cautious stance on IT stocks. CLSA has downgraded TCS, Infosys and Tech Mahindra from outperform to hold. Wipro and Mphasis have been downgraded from hold to underperform. According to the brokerage, artificial intelligence (AI) could increase pressure on the traditional IT services business. On the other hand, mid-cap and mid-tier IT companies offer better opportunities. CLSA believes that AI could put pricing pressure on traditional managed services........

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