JP Morgan downgrades HCL Tech, Wipro to ‘Underweight’; Prefers TCS, Infosys, Coforge

Indian IT services companies are likely to face another challenging earnings season according to JP Morgan. As AI-led disruption, delayed deal conversions and cautious client spending weigh on growth, the brokerage lowered medium-term growth estimates across the sector

JP Morgan cut valuation multiples and downgraded HCL Tech, Wipro and Tata Technologies, “We do not expect large-caps to hit mid-single-digit growth and hover around 3-4% revenue growth. Our top Overweights remain Tata Consultancy Services, Infosys, Tech Mahindra, Coforge, Persistent and Sagility,” JP Morgan said.