Independent brokerage and investment group CLSA has downgraded the Indian information technology services sector to "underweight" from "neutral", saying quarterly revenue growth on an annual basis has peaked for technology companies and a downtrend was likely. It downgraded Tata Consultancy Services and Infosys to "underperform" and claimed it has no positive ratings for the sector.
"Indian IT holds little promise of sustainable absolute returns hereon," CLSA said in a note. The Indian IT index was down 2.1 per cent, while the benchmark index was down 1.3 per cent.
