JP Morgan downgrades Indian IT sector to underweight from neutral

Infosys, TCS, MphasiS on JP Morgan's negative catalyst watch. Here's why

Image
Business Standard Editorial Comment
1 min read Last Updated : Mar 06 2024 | 12:03 PM IST
JP Morgan has reiterated its negative stance on Indian information technology (IT) services and downgraded the sector to underweight (neutral earlier post Q4-FY23 numbers), as it believes the overall demand environment for the sector still remains weak.
The research firm expects most companies in the sector to disappoint while announcing their first quarter numbers for the current fiscal (Q1-FY24). Among stocks, it has placed Infosys, TCS, MphasiS its ‘negative catalyst watch’.
“India IT Services offers investors an opportunity for a short IT Services trade for the second time in six months. After meeting 15 industry participants in Bangalore, we came away feeling that the demand environment for IT Services has likely weakened further in June,” wrote Ankur Rudra and Bhavik Mehta of JP Morgan in a recent note.

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

SAVE 25%

More From This Section

Topics :JP Morgan

First Published: Jun 15 2023 | 1:26 PM IST

Next Story