Jefferies sees growth uncertainty stalling rebound in India's beaten-down IT stocks

Hexaware Technologies

28/11/2025 05:25

** Jefferies says an uncertain growth outlook and a slow recovery that threaten fiscal year 2027 earnings could keep India's information technology stocks under pressure

** The Nifty IT index .NIFTYIT is down 13% in 2025, trailing the Nifty 50's .NSEI 11% gain, leading to a sharp price-to-earnings de-rating

** The drop is driven by about 700.3 billion rupees ($7.83 billion) of foreign outflows in 2025 through October 31, the most from any sector, NSDL data shows

** Growth worries and AI-related uncertainty could cap multiples, even if cheaper valuations offer better entry points, says Jefferies

** Adds mid-cap IT has outperformed on relatively better earnings, naming Coforge COFO.NS, Sagility SAGL.NS and Hexaware HEXW.NS as its preferred mid-caps

** Identifies Infosys INFY.NS and HCLTech HCLT.NS as its top large-cap picks.

($1 = 89.4690 Indian rupees)

 (Reporting by Komal Salecha and Bharath Rajeswaran)

 ((Komal@thomsonreuters.com;))