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IT sector valuations highly attractive after 21% YTD slump; Coforge, Infosys, TCS among top IT stocks to buy: Nuvama

Indian IT stocks have undergone massive value erosion over the last few months amid fears of Gen-AI affecting the long-term business model of sectoral companies. The Nifty IT index has plunged 21% YTD, with large-cap IT stocks falling 20% and midcaps IT stocks correcting 25% over the same period.

Mar 11, 2026 &03001111202631; 06:00 UTC www.livemint.com Trending 2/5

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Positive for markets

Sentiment score: +65/100

Moderate impact Medium-term (weeks)

WHAT THIS MEANS

Indian IT sector valuations have become highly attractive following a 21% YTD decline in the Nifty IT index, driven by Gen-AI concerns. Major IT stocks including Coforge, Infosys, and TCS are identified as compelling buy opportunities at depressed valuations after significant value erosion.

AI CONFIDENCE

75% High

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

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NIFTY IT

NIFTY ITIndex

Expected to rise

Oversold conditions with attractive valuations after 21% YTD decline; analyst recommendation for accumulation

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INFY

INFYStock

Expected to rise

Large-cap IT stock down 20% YTD; identified as top buy candidate by Nuvama at depressed valuations

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TCS

TCSStock

Expected to rise

Large-cap IT stock down 20% YTD; recommended for accumulation amid valuation reset

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COFORGE

COFORGEStock

Expected to rise

Midcap IT stock down 25% YTD; highlighted as attractive buy opportunity by Nuvama

PRICE HISTORY

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⚡ SUGGESTED ACTION

Consider initiating positions in large-cap IT stocks (Infosys, TCS) for medium-term recovery as valuations have become compelling after excessive selling. Midcap IT stocks like Coforge offer higher upside potential but with increased volatility; accumulate on weakness with a 12-18 month horizon.

KEY SIGNALS

Extreme oversold conditions in IT sectorValuation reset creating accumulation opportunitiesGen-AI concerns already priced inLarge-cap and midcap IT stocks showing similar weaknessAnalyst upgrade suggesting capitulation bottom

SECTORS INVOLVED

Information TechnologySoftware Services

Analysis generated on Mar 11, 2026 at 06:04 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by Livemint. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

IT sector valuations highly attractive after 21% YTD slump; Coforge, Infosys, TCS among top IT stocks to buy: Nuvama

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