Plumbers of the tech world! JP Morgan hunts deep value in India's IT bloodbath as stocks hit multi-year lows
[hfe_template id='11223']
[ad_1]
India's software giants may be getting priced for extinction, but JP Morgan has a message for panic-stricken investors: IT services firms are the indispensable "plumbers of the tech world," and their dividend yields have now hit levels last seen only during the global financial crisis and COVID-19. As Rs 5.7 lakh crore evaporates from the sector in just eight trading sessions and the Nifty IT index crashes 19% in the short span, the Wall Street giant is turning contrarian, declaring "deep value" buying opportunities in bloodied bellwethers Infosys and TCS. "IT Services companies remain the plumbers in the tech world," JP Morgan analysts led by Ankur Rudra wrote in a note provocatively titled "Discounted for extinction?" "If enterprise software/SaaS is rewritten on a bespoke basis by agents—it will need significant services plumbing to work in enterprise context and minimise AI slop." R...