Citi remains cautious on Indian IT firms on global uncertainty, unattractive valuations

Too early to be constructive on India's IT sector due to global uncertainty, unattractive valuations, says Citi Research

Brokerage expects IT stocks it covers to see 4% revenue growth in fiscal 2026, similar to current fiscal year estimates

Says, recent U.S. data suggests tough near-term outlook for IT firms, which earn a large share of revenue from the U.S.

Growth in IT is lower than pre-COVID levels; valuations may appear reasonable on a 5-year basis, but they are inflated by high growth in 2021 and 2022 - Citi

Brokerage, which has a "sell" rating on nine out of 12 stocks under its coverage, reiterates cautious view

Upgrades Mphasis MBFL.NS to "neutral" from "sell", lowers PT to 2,395 rupees from 2,720 rupees

Index .NIFTYIT down 1.6% on the day, ahead of U.S. Federal Reserve's policy decision

YTD, IT index down 17% vs Nifty 50's 3.2% drop