Down up to 24% from high, are IT stocks like Infosys a steal deal now or overpriced?

Even as some of India’s largest IT stocks are trading up to 25% below their 52-week peak levels, bargain hunters obsessed with PE valuation multiples aren’t finding enough reasons to start buying the diamonds lying in dust.

The reason why most institutional investors are staying away from IT stocks is not just because of the worsening growth outlook but also because even after the dip Nifty IT index is still trading at a 10% premium of 21.3x to its 10-year average valuations of 19.4x.