Up to 65% derating possible! Jefferies downgrades Infosys, TCS, 4 other IT stocks

Jefferies has downgraded major Indian IT stocks, including Infosys and TCS, warning of up to 65% valuation downside in a worst-case AI disruption scenario. The brokerage flagged structural risks to growth and margins, while favouring select mid-sized IT firms with stronger growth prospects despite near-term sectoral headwinds.