Jefferies downgrades TCS, Wipro on weak Q2 growth outlook

Jefferies has signalled a cautious outlook for Indian IT companies ahead of second-quarter results, expecting growth to be driven largely by acquisitions rather than organic expansion. Large IT firms are projected to grow just 0.5% quarter-on-quarter, with analysts flagging significant downside risks.

TCS, Wipro, and HCL Technologies have been assigned underperform ratings by the brokerage. Infosys, meanwhile, maintains a hold rating with limited upside potential. Mid-tier IT companies are expected to outperform their larger peers during the period.