Advantage Wipro, TCS now. But Infy crisis can dent confidence in Indian IT

If the whistleblower complaint against the top management of InfosysNSE 1.28 % turns out to be true, the entire IT sector could feel the heat. However, select names among them could gain in the near term at the expense of Infosys.

Analysts expect TCSNSE 0.46 % and WiproNSE 0.22 % to gain, as funds flowing out of Infosys will look at them. The initial flow was already seen on Tuesday, after Infosys tanked as much as 19 per cent in Mumbai trade, while TCS and Wipro logged solid gains.

The fallout “should be very positive for Wipro. I have a ‘buy’ rating on Wipro, as we know the management quality there. TCS and Wipro would be two gainers from the problems at Infosys,” said Sajiv Bhasin, EVP for Markets at IIFL.