The global brokerage firm has downgraded Wipro to 'Sell' from 'Neutral' while TCS has been downgraded to 'Neutral' from 'Buy' with the target price of Rs 2,105. Mphasis, too, has been downgraded to 'Neutral' from 'Buy' with the price target of Rs 924, as per reports. In its note, Goldman Sachs said cyclical slowdown weighs on structural drivers.
September quarter was a mixed bag for large-cap IT companies. While HCL Tech, Tech Mahindra and Infosys
outperformed in revenue growth and margin, TCS missed estimates on both revenues and EBIT margin. Wipro, on the other hand, had a stable quarter.
has seen a steep correction post the whistleblower issue and remains our top pick in large cap IT. We expect current uncertainty to fade off over next two months," analysts at Centrum Broking said in report dated November 19.
Thus far in the financial year 2019-20 (FY20), barring NIIT Tech, TCS, and HCL Tech, all the constituents of the Nifty IT pack have underperformed the benchmark index. While NIIT Tech has risen 13 per cent, TCS and HCL Tech have gained 6 per cent and 4.5 per cent, respectively. The Nifty50 index, on the other hand, has climbed nearly 3 per cent while Nifty IT index has slipped over 2 per cent during the window.