Infosys, TCS, Wipro, HCLTech shares hit 52-week lows as Nifty IT slides over 2%

Shares of Infosys Ltd, Tata Consultancy Services Ltd (TCS), Wipro Ltd and HCL Technologies Ltd tumbled to their respective 52-week low levels on Wednesday, weighing heavily on the Nifty IT sub-index, which declined 2.01 per cent. Other IT counters, including Coforge Ltd, Tech Mahindra Ltd, Persistent Systems Ltd and Mphasis Ltd, also settled lower.

Among the sectoral losers, KPIT Technologies emerged as the biggest drag, with the stock also touching a 52-week low. The automotive software company came under pressure after warning that its financial performance for the June quarter (Q1 FY27) would be weaker than previously anticipated due to an unexpected slowdown in business from several European automakers. It also said its Q2 FY27 performance is likely to remain similar to that of Q1.

Following the revised business outlook, global brokerage JPMorgan downgraded KPIT Technologies to 'Underweight' from its earlier rating and slashed the target price to Rs 550 from Rs 700.

Persistent Systems also remained under pressure as investors assessed the company's proposed acquisition of Munich-headquartered digital engineering firm Nagarro. Persistent has agreed to acquire Nagarro at an enterprise value of EUR 1.27 billion.

In the wake of this announcement, domestic brokerage Nuvama Institutional Equities downgraded Persistent to 'Hold', citing rich valuations, while Elara Capital retained its 'Sell' rating on the stock.

Meanwhile, Motilal Oswal Financial Services (MOFSL) sees demand commentary for the IT sector to remain weak in the June quarter, with macroeconomic uncertainty, artificial intelligence (AI)-related disruptions and geopolitical challenges continuing to weigh on discretionary spending and decision-making.

"Against this backdrop, we build in tepid QoQ growth across our coverage universe for Q1 FY27, with the soft start likely extending into Q2 FY27 as well," MOFSL stated.

It expects Infosys to lower the upper end of its FY27 guidance by 50 basis points (bps), while HCLTech is likely to trim the upper end of its services growth guidance by 100 bps.

Ajit Mishra – SVP (Research) at Religare Broking, asserted, "We maintain our negative stance on IT due to its continued weakness."