Nifty IT lags again after sharp fall, but March stability raises hope worst may be priced in

Abhishek Pathak, IT & Tech Analyst, Institutional Equities at Motilal Oswal Financial Services, said his current stock-picking framework focuses on bottom-up opportunities with strong deal visibility and healthy exit rates for the fourth quarter. Among large-cap IT stocks, he prefers HCLTech and Tech Mahindra.

He also highlighted that, for the first time in five to six years, high-quality midcap IT companies are available at valuations comparable to large caps. These midcaps have consistently outperformed

large caps over the past seven to eight years but were typically expensive. Currently, they are trading at around 17–18 times forward earnings, making them more attractive.

In this context, he sees Coforge and Mphasis as offering strong value and compelling entry opportunities. He believes midcaps are better positioned to adapt to potential AI-led disruption, as they can pivot their offerings and delivery models faster than large-cap peers.

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