“Bearish on large-cap IT, forecasting only 1-3% dollar revenue growth for the next two years due to severe AI-driven pricing pressure, with deflation of 10-15% in large deals and up to 30-40% in some long-term contracts. This translates to a 2-4% net deflation impact, outweighing new volume opportunities from AI adoption. CLSA downgraded TCS and Infosys to Hold in August as valuations moved above intrinsic value after a sharp rally and further guidance cuts.”