CLSA dismisses AI threat to IT firms, Nifty IT jumps over 4%; Infosys, TCS, HCL Tech among top gainers

CLSA dismisses AI threat to IT firms, Nifty IT jumps over 4%; Infosys, TCS, HCL Tech among top gainers CLSA dismissed concerns over AI-led disruption in Indian IT services, stating that there is no evidence of pricing pressure in client renewals despite the latest tools from Anthropic and OpenAI. The brokerage’s view helped drive a sharp rally in the sector on Wednesday, with the Nifty IT index surging over 4 percent and heavyweight stocks featuring among Nifty top gainers Frontline IT stocks led the rally. Tech Mahindra shares rose over 4 percent, while Infosys and

gained nearly 4 percent each. TCS stock advanced more than 3.5 percent and Wipro rose over 3 percent, placing five IT stocks among the top gainers on the benchmark index. The brokerage said that while some companies are seeing minor delays in client decision-making as enterprises assess new AI capabilities and navigate the ongoing Middle East crisis, deal pipelines remain strong. It also highlighted that direct revenue exposure to the Middle East is in low single digits for Indian IT firms, indicating limited immediate impact, while broader macro risks depend on how the geopolitical situation evolves. All this information is for learning purpose, and this is not a buy/sell recommendation. Thank you, Technofunda24