TCS, Infosys crash up to 55%: Why India's largest mutual fund scheme is still buying

Parag Parikh Flexicap Fund, India's largest mutual fund with AUM above Rs 1.1 lakh crore, increased holdings in TCS, Infosys, and HCL Technologies in June, adding 18.26 lakh, 54 lakh, and 31.15 lakh shares respectively. The buying comes despite TCS falling 55 percent from its all-time high, Infosys declining 47 percent, and HCL Tech dropping 43 percent, with the fund's CIO citing cash flows over the AI disruption narrative. Top largecap IT names now trade at a 36 percent discount to their 10-year average P/E with average dividend yield of 4.9 percent, though earnings visibility remains absent.