Reports of IT Industry's Decline Are Exaggerated: Nuvama's Take

Nuvama Upgrades HCLTech, Wipro, Tech Mahindra, Hexaware to ‘Buy’; Now Bullish on All Top 10 Indian IT Stocks​

Mumbai, March 11: Brokerage firm Nuvama has turned bullish on the entire top 10 Indian IT services companies, assigning a “buy” rating to all of them after upgrading its recommendations for HCLTech, Wipro, Tech Mahindra, and Hexaware Technologies in its latest note released on Wednesday, March 11.
The brokerage said that despite near term volatility, the Indian IT services sector remains positive for the medium to long term, even as the industry navigates concerns around the rise of generative AI (Gen AI).

HCLTech, Wipro, Tech Mahindra, Hexaware Upgraded​

Nuvama upgraded the ratings for four IT companies from “hold” to “buy,” although it adjusted price targets for some of them.
Updated Ratings and Targets
While the brokerage lowered price targets for HCLTech, Wipro, and Hexaware, Tech Mahindra’s price target remained unchanged.

IT Sector Faces Sharp Correction in 2026​

The Nifty IT index has fallen more than 20 percent in the first two months of the year, with every stock in the index trading at double digit losses ranging from 12 percent to nearly 30 percent.
Nuvama referenced a famous quote by Mark Twain, stating that “reports of my death are greatly exaggerated,” comparing it to the current sentiment surrounding the Indian IT services industry.
According to the brokerage, concerns over the impact of Gen AI adoption have triggered a wave of pessimism about the future of traditional IT services. These concerns were further amplified after sharp declines in global SaaS companies, which eventually spilled over into Indian IT stocks.

IT Services Model Expected to Remain Relevant​

Nuvama noted that enterprises adopting automation and new technologies will continue to require system integrators capable of customizing enterprise software and managing complex implementations.
The brokerage said companies will still need partners to take ownership of enterprise systems and ensure integration across platforms, a role typically handled by IT services firms.

Gen AI Seen as Opportunity, Not Just Disruption​

While acknowledging potential disruptions from generative AI, Nuvama said the technology could also create larger opportunities for IT services companies.
The brokerage added that the recent market correction has made valuations across the sector more attractive, although price targets were revised lower to account for possible risks from technological disruption.

Nuvama’s Top IT Stock Recommendations​

Nuvama’s coverage now carries “buy” ratings across all major Indian IT services companies, with varying upside potential based on current valuations.
With these upgrades, Nuvama has taken a uniformly positive stance on India’s leading IT services companies, despite the sharp correction in the sector and ongoing debate about the long term impact of artificial intelligence.