Shares of Infosys Ltd and Wipro Ltd slipped in early trade on Wednesday, with both IT stocks trading near their respective six-year lows amid continued pressure on the sector.

Infosys shares fell below the Rs 1,000 mark, touching Rs 993.15 before recovering from the day's low. The stock had touched an intraday low of Rs 980.30 yesterday. It was last seen around these levels in October 2020.

Wipro shares also declined, touching a six-year low of Rs 156.60. The stock later recovered and was last seen trading above Rs 160 level.

IT stocks have remained under pressure amid concerns around AI-led disruption, muted earnings growth, cautious management commentary, expectations of a hike in US interest rates and continued foreign institutional investor (FII) selling.

Ahead of the September quarter (Q2 FY27) earnings, Kotak Equities said demand conditions have neither improved nor deteriorated from the June 2026 quarter and expects another muted quarter for large IT companies.

For Infosys, Kotak expects a guidance cut. The brokerage has assigned a fair value of Rs 1,200 to the stock, while maintaining an 'Add' call.

Kotak said investors are likely to focus on the reasons for revenue growth underperformance in FY27, retention and renewal of mega deals won in recent years, and the relative impact of macro weakness and AI-led deflation on growth. It also expects attention on the pace of conversion of GenAI programmes from pilots to scaled deployments, whether such programmes represent new revenue or deflation of existing work, and the company's margin-defence measures amid pricing pressure.

For Wipro, Kotak has assigned a fair value of Rs 150 with a 'Sell' tag. The brokerage expects investor focus on Wipro's AI strategy and measures to offset AI-related deflation, pricing pressure in renewal deals, timelines for growth to catch up with peers, its GCC growth strategy, and integration plans and synergies from recent acquisitions.

Kotak sees Wipro's revenue growth guidance at (-)2 per cent to 0 per cent.

JM Financial said Indian IT could be headed for another soft quarter in Q2 FY27. It has an 'Add' rating on Infosys and a target price of Rs 1,130.

On Wipro, JM has retained its 'Reduce' rating with a target price of Rs 160.