Shares of these 50-year-old IT companies have fallen by up to 40%. Tata's TCS or Narayana Murthy's Infosys, which one should you invest in

News Topical, Digital Desk : IT stocks have disappointed significantly in terms of returns for 2025 and early 2026. The IT index delivered a negative 12% return in 2025, while it has lost 23% so far this year. Shares of several large and small IT companies, including TCS, Infosys, Wipro, and HCL, have fallen by up to 50% from their record highs. So, the question is: should you invest in IT stocks now?

This question has been answered by market expert Sachin Gupta, Vice President of Equity Research at Choice Equity Broking. Sachin Gupta has given his opinion keeping a technical view on IT stocks.

"Classic oversold reversal" in the IT sector

Sachin Gupta said the Indian IT sector appears to be undergoing a classic "oversold reversal" after hitting a 52-week low on March 17. Following a prolonged correction, the Nifty IT index fell nearly 28% from its peak of 40,301. The IT sector has rebounded over the past few sessions and is experiencing buying activity.

Which IT stock should you invest in?

Sachin Gupta said, "From a stock-specific perspective, Tata Consultancy Services (TCS) is outperforming from a technical perspective. The stock has shown strength during the recent decline, holding above its current support level of 2360, and forming a bullish spinning top pattern on the weekly chart."

The ₹2,500 level remains an immediate resistance for TCS shares, and if it breaks, the stock could see a target of ₹2,850. Therefore, a buy-on-dip strategy should be adopted for TCS shares. It's worth noting that TCS shares have fallen 45% from their all-time high of ₹4,592 to ₹2,350.

Read More: Shares of these 50-year-old IT companies have fallen by up to 40%. Tata's TCS or Narayana Murthy's Infosys, which one should you invest in