From Infosys to Coforge: Why Nomura bets AI won’t make IT Services obsolete

IT stocks have seen sharp correction so far this year with many top-tier IT companies declining over 20% in 2026 thus far. In fact, the Nifty IT Index has fallen around 20% on a YTD basis. One of the key reasons behind the steep sell-off have been investor concerns over the potential disruption caused by AI. However, international brokerage firm Nomura remains constructive on the sector.

After Nuvama’s strong Buy call for top-10 IT services stocks, Nomura too believes the recent sell-off may have already priced in much of the near-term pain for IT services companies. They are betting on the long-term opportunities. They do not expect AI to make IT services obsolete.