IT companies' valuation hits 5-year low amid selloff by investors

Top information-technology (IT) services companies continue to lose ground on the bourses as investors turn away from them owing to an earnings slowdown and threat from artificial intelligence. The combined market capitalisation of the country’s top five IT firms that are part of the BSE Sensex is down 24 per cent since January and their valuation has slipped to lowest levels in the past five years. The sector is trading at a discount to the BSE Sensex and trailing the price/earning (P/E) multiple for the first time in the past four years. The trailing P/E of the top five IT companies has