Not a Normal Correction

TCS is profitable. Infosys is winning deals. HCLTech raised guidance. Yet stocks keep falling. This is a structural reset.

It’s About Future Growth

Markets don’t price today’s earnings — they price the next 5 years. AI is changing long-term growth expectations.

Business Model Explained

Old model: more engineers = more revenue. AI model: fewer engineers, faster delivery, lower billing. That’s revenue deflation risk.

What Management Is Saying

AI is already generating revenue. Growth is weak but not collapsing. Massive AI reskilling is underway across IT giants.

Why Index Falls Look Sharp

IT has 10–11% weight in NIFTY. When Infosys & TCS drop 5–6%, the entire index feels the impact.

Collapse or Transition?

Analysts call it structural transition — from staffing-led growth to AI-led integration and outcome-based pricing.

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Read the full analysis to understand what investors must track before buying or exiting IT stocks.