Investors may prefer a ‘safer’ TCS over Infy for now amid uncertainties

Mumbai: Tata Consultancy Services (TCS), India’s largest software firm, is expected to widen its lead over its nearest rival InfosysNSE 1.33 % on the bourses following whistleblower complaints against the latter’s executives alleging unethical practices. Shares of TCSNSE 0.34 % are being seen as a safer bet compared to Infosys, which posted its biggest oneday loss in six years to end at lowest level since November 2018 on Tuesday.

“We expect a negative reaction on the (Infosys) stock in the near term, and expect the company’s valuation discount could widen against TCS till clarity emerges on this issue,” said UBS’ Diviya Nagarajan in a note, maintaining a ‘neutral’ rating on the stock.