Indian IT stocks gain as Jefferies upgrades sector to 'neutral'

Infosys

27/07/2026 05:40

** Indian IT stocks .NIFTYIT climb 2.4%, top sectoral gainer 
** Jefferies raises sector to "neutral" from "underweight"
** Brokerage says feedback from more than 50 foreign investors points to improving sentiment toward India as the global AI trade comes under scrutiny
** Notes foreign portfolio investor flows into Indian equities have turned positive, with inflows worth $3 billion over last 5 weeks, reversing part of the prior four months' outflows
** Brokerage adds Infosys INFY.NS and increases weight of Coforge COFO.NS in model portfolio
** INFY and COFO up ~3% each
** Indian IT stocks have borne the brunt of AI-related concerns, with the Nifty IT index down 38% from its December 2024 peak and top IT firms down 35%-50% from two-year highs - Jefferies
** YTD, IT stocks down ~23% vs Nifty 50's .NSEI 8.4% drop


 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.tandon@thomsonreuters.com))