Emkay Global has turned 'Overweight' on Indian IT sector after Nifty IT fell 21 per cent in February 2026. It sees a 3-year return potential of up to 25 per cent with limited downside.
Analysts noted that AI-led deflationary pressure is becoming visible in Mphasis' contract renewals, with discounts nearly doubling from 10 per cent to approximately 20 per cent