Economy
CLSA Downgrades Major Indian IT Stocks Amid AI Shift
Moneycontrol1h
THE BRIEF
1
Financial services firm CLSA downgraded TCS, Infosys, and Tech Mahindra on August 19, 2026, citing concerns over their ability to maintain margins in an increasingly AI-driven market.
2
The firm shifted its preference toward mid-tier IT companies like Coforge and Persistent Systems, projecting up to 30% upside potential for these firms due to their specialized service models.
3
The downgrade reflects a broader trend of institutional investors reallocating capital away from large-cap IT giants as the industry faces structural changes and rising operational costs.