Four lost years push Indian IT to an AI reckoning. Will TCS, Infosys, Wipro deliver in 2026?
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India's information technology stocks have spent the better part of the last four years testing investor patience. After a stellar run through 2020 and 2021, when global digital spending surged during the pandemic, the sector has since steadily lost momentum. The Nifty IT index is trading close to a four-year low, a sharp contrast to the optimism that once surrounded the country's software exporters. In 2021, the Nifty IT index delivered a return of nearly 60%, riding a wave of emergency tech spending, cloud migration, and strong deal pipelines. This optimism came down quickly when global inflation, aggressive interest rate hikes, and fears of recession forced clients to cut back on discretionary tech spending. In 2022, the index fell more than 26%. While there was a recovery in 2023 and 2024, with gains of about 24% and 22% respectively, the rebound lacked conviction. During this phase, markets were navigating the early uncertain...