IT stocks to buy: Deven Choksey sees 15-20% upside in IT stocks post correction; TCS, Infy in focus
Deven Choksey sees 15–20% upside in large-cap IT stocks if the recent correction has marked a bottom, with TCS and Infosys in focus.
- Sep 30, 2026,
- Updated Sep 30, 2026 3:49 PM IST
India’s IT pack may be shaping up as a relatively safe tactical trade after the recent market correction, with Deven Choksey, MD at DR Choksey Finserv arguing that large-cap software names could offer 15-20 per cent upside if current levels indeed mark a bottom. His comments come as IT stocks outperformed in trade, with investors reassessing the sector amid a broader debate around the pace of global AI adoption and regulation.
IT Seen as a Tactical Opportunity Choksey said IT companies are likely to “play in a 15-20 per cent band” from here, suggesting that the recent weakness in select counters may have already priced in much of the near-term uncertainty. In his view, if the market has formed a “typical bottom” in some IT names, the rebound potential in a supportive market could be meaningful.
That makes the sector attractive not necessarily as a runaway structural bet, but as a relatively measured opportunity in a volatile tape. He specifically indicated that the downside risk in bellwethers such as TCS and Infosys may remain limited at current market prices.
Why the Street Is Watching IT Again The renewed interest in IT comes at a time when global conversations around AI safeguards and calls for a more calibrated pace of AI development are gaining traction. For domestic IT companies, that narrative matters because any moderation in the AI frenzy could redirect investor attention toward established technology services players with proven execution, strong balance sheets and global client relationships.
In the broader market discussion, Choksey also maintained that Indian equities are in the process of bottoming out, with panic-led declines potentially creating value-buying opportunities. Against that backdrop, IT appears to him to be one of the safer pockets for investors looking to deploy capital selectively rather than chase momentum across the board.
The Risks Behind the Trade Still, Choksey was clear that this is not a risk-free call. The first risk, he said, is time: IT stocks can “drag for a longer time,” delaying returns even if the downside remains capped. The second is underwhelming upside — if gains remain below expectations, the trade could disappoint despite appearing safe on entry.
His strategy, therefore, is distinctly pragmatic. “When the panic button is getting created at that point of time, buy into them,” he said, adding that investors could look to “trade it out at 15-20 per cent upside” in a recovering market.
What It Means for Investors The message for investors is clear: in a market still searching for a firm floor, large-cap IT may offer a favourable risk-reward setup. But the bet is best viewed as a disciplined trading opportunity tied to market recovery, not an open-ended rerating call.
India’s IT pack may be shaping up as a relatively safe tactical trade after the recent market correction, with Deven Choksey, MD at DR Choksey Finserv arguing that large-cap software names could offer 15-20 per cent upside if current levels indeed mark a bottom. His comments come as IT stocks outperformed in trade, with investors reassessing the sector amid a broader debate around the pace of global AI adoption and regulation.
IT Seen as a Tactical Opportunity Choksey said IT companies are likely to “play in a 15-20 per cent band” from here, suggesting that the recent weakness in select counters may have already priced in much of the near-term uncertainty. In his view, if the market has formed a “typical bottom” in some IT names, the rebound potential in a supportive market could be meaningful.
That makes the sector attractive not necessarily as a runaway structural bet, but as a relatively measured opportunity in a volatile tape. He specifically indicated that the downside risk in bellwethers such as TCS and Infosys may remain limited at current market prices.
Why the Street Is Watching IT Again The renewed interest in IT comes at a time when global conversations around AI safeguards and calls for a more calibrated pace of AI development are gaining traction. For domestic IT companies, that narrative matters because any moderation in the AI frenzy could redirect investor attention toward established technology services players with proven execution, strong balance sheets and global client relationships.
In the broader market discussion, Choksey also maintained that Indian equities are in the process of bottoming out, with panic-led declines potentially creating value-buying opportunities. Against that backdrop, IT appears to him to be one of the safer pockets for investors looking to deploy capital selectively rather than chase momentum across the board.
The Risks Behind the Trade Still, Choksey was clear that this is not a risk-free call. The first risk, he said, is time: IT stocks can “drag for a longer time,” delaying returns even if the downside remains capped. The second is underwhelming upside — if gains remain below expectations, the trade could disappoint despite appearing safe on entry.
His strategy, therefore, is distinctly pragmatic. “When the panic button is getting created at that point of time, buy into them,” he said, adding that investors could look to “trade it out at 15-20 per cent upside” in a recovering market.
What It Means for Investors The message for investors is clear: in a market still searching for a firm floor, large-cap IT may offer a favourable risk-reward setup. But the bet is best viewed as a disciplined trading opportunity tied to market recovery, not an open-ended rerating call.