1 month ago
Jefferies Upgrades Indian IT Sector Outlook
Jefferies, a big brokerage company, has changed its mind about the Indian IT sector.
They now think it might do better soon because of something called AI.
They added Infosys, a big IT company, to their list of recommended stocks.
Other companies still think the IT sector might not do well.
Some investors who were not investing much in India are now thinking about changing their minds.
There's been some money coming into India recently, but there's also been a lot leaving over the last few months.
Jefferies upgraded its stance on the Indian IT sector from underweight to neutral.
Infosys was added to Jefferies' model portfolio.
Infosys revised its FY2027 revenue growth guidance down to 1.5% to 3%.
Foreign portfolio investors are re-evaluating their underweight positions in India.
FPI flows have been net positive $3 billion over the last five weeks.
- Who
- Jefferies, Infosys, Foreign Portfolio Investors
- What
- Jefferies upgraded its stance on the Indian IT sector and added Infosys to its model portfolio.
- Where
- India
- When
- July 27, 2026
- Why
- Due to potential AI trade reversal and softer negative stock reactions.
Optimistic View
Pessimistic View
Sector Performance
Optimistic View
Jefferies sees a tactical upside in the IT sector due to AI trade reversal and softer negative stock reactions.
Pessimistic View
Other brokerages expect a continued negative bias in the sector.
Investor Sentiment
Optimistic View
Foreign portfolio investors are re-evaluating and reversing their underweight positions in India.
Pessimistic View
Significant outflows have been observed in the past four months, totaling $29 billion.
Key facts
- Date of Jefferies' Note
- July 27, 2026
- Infosys Revenue Growth Guidance
- 1.5% to 3%
- FPI Flows Last Five Weeks
- $3 billion net positive
- Overall FPI Outflows Last Four Months
- $29 billion
- Jefferies' New Stance
- Neutral
- IT Sector Valuation
- 13-17 times price-to-earnings multiples
- Revenue Growth Expectation
- Low-to-mid single digits over FY26-28E
Quotes
Jefferies Analyst
Representative of the brokerage firm Jefferies
“"Several FPIs had been running significant UWTs on India, though our meetings in the last two weeks suggest that these positions are now either being reversed or re‑evaluated."”
financialexpress.com
“"We add Infosys and raise weight in Coforge in our model portfolio, taking IT to neutral, funded by weight trims in power, realty and hospital - still remaining large OWTs."”
thehindubusinessline.com
Sources
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