IT stocks are in focus as Nifty IT index is under strong selling pressure. The index is down 28% in 2026 against over 9% fall in Sensex and a 8% decline in the Nifty50 index. Fears over the AI-led disruption, Accenture's weak revenue forecasts and the US-Iran war have led to panic selling in the Indian stock market including the IT stocks. 

Amid weakness in the IT sector sentiment, BofA Securities has initiated coverage on a select group of midcap IT companies, asserting that the sector's long-term performance will increasingly bank on companies' artificial intelligence strategies, disciplined capital allocation, scalable business models and durable competitive advantages.

The brokerage's coverage comes as the Nifty IT index remains under pressure amid concerns that rapid advances in AI could disrupt traditional IT services and weigh on sector valuations. 

Among its top picks, BofA assigned a Buy rating to Coforge with a target price of Rs 1,725, citing the company's robust revenue growth, consistent execution, and strong track record in mergers and acquisitions as key positives.

Coforge stock ended at Rs 1460 in the previous session. Market cap of the firm stood at Rs 64,201 crore. The stock has gained 28% in three months. 

For Mphasis, the brokerage maintained a Neutral rating with a target price of Rs 2,440, saying the company is likely to remain in a 'show-me' phase over the next six to twelve months as investors await stronger evidence of sustained growth. Mphasis shares ended flat at Rs 22263 in the previous session. Market cap of the IT company stood at Rs 43,199 crore. The stock has fallen 20% in 2026 and 18% in a year. 

BofA initiated coverage on Persistent Systems with an Underperform rating and a target price of Rs 4,875, reflecting concerns over its current valuation and future upside. Persistent Systems stock ended 1.80% lower at Rs 4840.45 in the previous session. Market cap of the firm stood at Rs 76,358 crore. The stock has lost 23% in three months and fallen 21% in a year. 

The brokerage also assigned an 'Underperform' rating to LTIMindtree, setting a target price of Rs 3,910. The brokerage believes the company needs fresh growth catalysts to support its existing valuation and drive meaningful stock performance.

LTIMindtree shares closed 1.21% lower at Rs 3759.60 in the previous session. Market cap of the firm fell to Rs 1.11 lakh crore. The stock has lost 39% in 2026 and fallen 27% in two years.