Infosys shares get an upgrade post recent stock correction; Nifty IT up 2.5%
Published on 25/08/2025 10:27 AM
Infosys shares get an upgrade post recent stock correction; Nifty IT up 2.5%Investec's top Tier-1 picks include Tech Mahindra, Infosys, and TCS, while its preferred Tier-2 names are Mphasis, Zensar, and KPIT.By Meghna Sen August 25, 2025, 10:27:17 AM IST (Published)2 Min ReadShares of Indian IT companies such as Infosys Ltd., Tata Consultancy Services Ltd. (TCS), Wipro Ltd., and HCL Technologies Ltd. opened higher on Monday, August 25, lifting the Nifty IT index by as much as 3% in early trade.
On the Nifty 50, TCS, Infosys, and Wipro were among the top gainers. Infosys and TCS surged over 2.5% each, Tech Mahindra and HCL Technologies gained around 2%, while Wipro climbed nearly 3%.
Brokerage firm Investec upgraded Infosys to a 'Buy' rating from 'Hold' after the recent stock correction. The brokerage has a target price of ₹1,655 per share on the counter.
The brokerage wrote in its note that the risk-reward has improved across most IT stocks over the past month. It expects Tier-1 IT companies to offer 10-15% potential returns over the next year, supported by US rate cuts and vendor consolidation deals.
Investec's top Tier-1 picks include Tech Mahindra, Infosys, and TCS, while its preferred Tier-2 names are Mphasis, Zensar, and KPIT.
Meanwhile, JPMorgan upgraded TCS to 'Overweight' from 'Neutral', raising its target price to ₹3,800 from ₹3,650.
The brokerage said that TCS has underperformed the Nifty by 29% and the Nifty IT index by 6% so far in 2025, largely due to repeated earnings cuts on lower-than-expected growth and margin pressures.
However, JPMorgan said it does not believe the company's business model is broken. It expects growth to recover in the second half of FY26, with TCS well-positioned to benefit from any rebound in client spending and business sentiment.
Analysts believe IT stocks could see further gains if the US Federal Reserve confirms a rate cut, though broader market sentiment remains vulnerable to geopolitical tensions and trade-related uncertainties.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsIndian IT stocksInfosys share priceshare market todayTCS share priceWipro