Deven Choksey from DR Choksey Finserv advises a tactical approach to Indian IT stocks, citing potential 15-20% upside in large-cap names like TCS and Infosys, amidst a cautious outlook on sector recovery and market volatility.
Deven Choksey, managing director at DR Choksey Finserv, believes India’s information technology stocks may still have room to recover after the recent sell-off, with large-cap names such as Tata Consultancy Services and Infosys offering as much as 15% to 20% upside if the correction has already found a floor. Business Today reported that he sees the sector less as a high-octane structural bet and more as a measured opportunity in a choppy market, where downside in the biggest names may now be limited.
That view comes as investors reassess the technology trade after months of weakness in global markets and renewed debate over artificial intelligence spending. In recent weeks, analysts at Morgan Stanley have pointed to a broader rebound in Indian IT shares, saying TCS, Infosys and HCLTech could rise further as sentiment improves, while CLSA has argued that valuations across the sector have become more attractive. The shift suggests that some fund managers are again treating the sector as a defensive corner of the market rather than an area to avoid.
Choksey’s caution is that the trade is not without friction. He has warned that IT stocks can remain subdued for longer than investors expect, which can delay returns even if the downside is contained. He also made clear that the opportunity should be approached tactically: buying when panic is strongest, then taking profits once the recovery reaches roughly the 15% to 20% range. That is a trading stance, not a blanket call for a full-scale rerating of the sector.
His preference for large-cap technology names is also consistent with earlier work by his brokerage. In January 2026, DR Choksey Finserv assigned TCS an accumulate rating and a target price of Rs 3,600, pointing to steady execution in a mixed demand environment and forecasting moderate revenue and earnings growth over the following two fiscal years. Other brokerages have been more selective. Citi Research has said growth across Indian IT may remain subdued and singled out Infosys and Mphasis more favourably than some of the larger peers, underlining that the sector’s recovery is still being debated rather than universally embraced.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
