Indian IT valuations fall near subprime crisis levels

19 Mwezi wa tano, 2026

Imeripotiwa na AI

Indian IT exporters have seen their stock valuations drop to levels last seen during the 2008-09 subprime crisis. The companies now trade at price-to-earnings multiples of 15 to 18 after losing nearly 30 percent in 2026. AI advancements and new competition are cited as key drivers of the decline.

Indian IT exporters including Infosys, Tata Consultancy Services, HCL Technologies and Wipro have experienced sharp declines in market value. Their valuations now sit close to those recorded in the 2008-09 financial crisis period, with shares trading at 15-18 P/E multiples.

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Nifty IT index slumps 6% after Accenture guidance cut

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BNP Paribas analyst Kumar Rakesh has cautioned investors against viewing largecap Indian IT stocks as a straightforward value play. He points to weak FY27 guidance, AI-led disruptions, and stalled client spending as major challenges. Buybacks and dividends offer some support, but earnings risks remain high.

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