IT stock prices may fall 18-35% if US recession hits: KIE

Kotak Institutional Equities (KIE) has projected a potential 18-35% decline in stock prices of IT companies from current levels if the US, a major markets for these entities, faces a moderate recession in near term.

“We estimate a 22-38% downside to the current FVs (face value) and an 18-35% downside compared to CMPs (current market price) for stocks under coverage, assuming no tariff on services exports. TCS, Infosys, HCLTech and Coforge have lower downside,” KIE said in its report, ‘When do IT stocks bottom out in case of a recession?’