Too early to write obituaries for Indian IT companies, says Gurmeet Chadha, slams analysts – News Air Insight

Indian IT stocks could be down amid current headwinds, but they are the backbone of the domestic economy, generating millions of jobs, foreign exchange reserves while building a tech ecosystem, Gurmeet Chadha, Managing Partner & CIO at Complete Circle Consultants, said, slamming analysts who in his views are “abusing” top IT companies. He said that the “analysts” should analyse, sell or trim their holdings in IT stocks and refrain from “abuses”.

He said it was too early to write their obituaries.

As a disclaimer, Chadha clarified that he remains “grossly underweight” on IT sector and has no vested interests.

“I see some Analysts and investors abuse TCS, Infy and IT cos… It’s been the backbone of economy, generating millions of Jobs, forex reserves and building tech ecosystem and cities like Bengaluru, Hyderabad. Yes they have been slow on AI n will Pay a price.. Analyse , sell/trim your holdings but let’s not abuse. And too early to write obituaries. ( disc -grossly underweight IT in portfolios.. so no vested interest),” Chadha said in a tweet.

As the earnings season starts on Thursday, with IT bellwether Tata Consultancy Services (TCS) declaring its Q2 results, the stocks are in strong buzz. Over the past one week, IT stocks have rallied up to 11%. The top gainer has been Oracle Financial Services Software (OFSS) with mid-tier stocks Persistent Systems, Mphasis and Coforge following suit, with 9%, 6% and 6%, respectively.

Also read more: After income tax and GST tweaks, Gurmeet Chadha bats for next big push — LTCG cutTCS has gained 3% while Infosys is up 1.2%. At the index level, Nifty IT has soared 3%.Mid-tier IT services firms are expected to drive the sector’s growth in Q2FY26, a quarter marred by macroeconomic headwinds and pricing pressures that curbed overall industry revenues as clients remained cautious on large or discretionary projects.

Estimates from two leading domestic brokerages suggest these companies may report constant-currency sequential revenue growth ranging from -0.5% to 6%.

Read more: Q2 preview: Coforge set to lead IT earnings as mid-tier firms outshine largecaps; 8 stocks to buy

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