TCS, Infosys, Coforge, other IT stocks rally up to 10% after Nvidia-led chip rout. Is AI trade ending?

Indian IT stocks rallied between 1% and 10%, led by a 10% surge in Coforge, after AI-driven chip rout raised concerns over returns on AI spending. Jefferies closed its longstanding underweight call on Indian IT services by adding Infosys and raising weight in Coforge, noting positive shifts in FPI sentiment and turning flows. The IT sector is down 25% year-to-date, with the top four players trading at 13-17x PEs after falling 35-50% from recent peaks, prompting expectations of a tactical recovery if the AI trade pauses.