Leading Indian IT sector firms, Infosys Ltd, KPIT Technologies Ltd, Wipro Ltd, and Tata Elxsi Ltd, experienced significant selling pressure on September 29, 2026, with their shares plummeting to fresh 52-week lows. This decline comes as the broader market undergoes a correction, and analysts anticipate a subdued quarter for many large IT companies.
IT Sector Faces Muted Demand
Kotak Equities reports that demand conditions have neither improved nor worsened since the June 2026 quarter, projecting another muted quarter for large IT players. HCL Tech is noted as a potential exception, while Tech Mahindra is expected to lead growth among hybrid models. Mid-tier companies like Persistent Systems, Coforge, and Mphasis Ltd are anticipated to report strong growth.
Infosys Shares and Outlook
Infosys shares dropped to a 52-week low of Rs 980.30, reducing its market capitalization to Rs 4 lakh crore. The stock's Relative Strength Index (RSI) stood at 31.2, nearing the oversold zone. Kotak Equities has set a fair value of Rs 1200 for Infosys, while JM Financial maintains an 'Add' rating with a target price of Rs 1130.
Ahead of Q2 earnings, investors are focusing on Infosys's revenue growth underperformance in FY2027E, retention of mega-deals, the impact of AI on revenue (deflation vs. net-new), the pace of GenAI deployment, and strategies to defend margins amidst pricing pressure.
KPIT Technologies Experiences Decline
KPIT Technologies also reached a 52-week low of Rs 495.75, with its market cap falling to Rs 13,953 crore and an RSI of 31.2. Kotak Equities assigned a fair value of Rs 540 to KPIT. Akshay Bhagwat, Senior Vice President of Derivatives Research at JM Financial Services, noted that the IT space remains challenging, with concerning news flow, suggesting that any support might only trigger a minor bounce.
Key investor considerations for KPIT include visibility of spending among major clients, commentary on industry demand, conversion timelines for new OEM engagements, demand improvement in Asia and Europe, sustainability in the CV vertical, ramp-up of engagements with lower-tier clients, and the success of productized services.
Wipro Hits New Lows
Wipro's stock touched a 52-week low of Rs 156.90, bringing its market capitalization to Rs 1.55 lakh crore. Its RSI was 30.4, indicating it is trading near the oversold territory. Kotak Equities set a fair value of Rs 150 for Wipro, while JM Financial issued a 'Reduce' rating with a target price of Rs 160.
For Wipro, investor attention is on its AI strategy and efforts to offset AI-led deflation, pricing pressure in renewal deals, timelines for catching up with peer growth, GCC growth strategy, and the integration plans and synergies from recent acquisitions.
Tata Elxsi's Stock Performance
Tata Elxsi also hit a fresh 52-week low of Rs 3110.05, with its market cap at Rs 19,626 crore and an RSI of 27, signaling a deeply oversold condition. Kotak Equities has assigned a fair value of Rs 3,000 to the Tata Elxsi stock.
Kotak highlights investor focus on the overall demand outlook in the SDS segment, medium-term growth aspirations, commentary on engagements with JLR and large Japanese transportation clients, visibility of transportation segment growth acceleration by 4QFY27, demand outlook for the media & communications vertical, pipeline conversion and growth in healthcare, and progress on scaling up adjacencies across its three core verticals.