Indian IT trades at much lower valuations, but revenue growth faces pressure from AI and weaker enterprise demand.

Global tech has stronger growth and AI exposure, but higher valuations create greater expectations for future earnings.

Cloud, cybersecurity, AI, and digital transformation remain major demand areas across both markets.

Indian IT stocks and global tech stocks now present two very different market setups. Nifty IT has faced a sharp decline, while US technology stocks have posted strong gains. At the same time, Indian IT valuations have fallen far below past levels, while major US tech names carry much higher price multiples. The result is a clear gap between price and growth across the two markets.

As of September 23, 2026, Nifty IT stood near 28,334, with a price-to-earnings ratio of about 17.3 times. The index had fallen 19.62% over one year, 13.89% over three years and 23.0% over five years. By contrast, the Nasdaq-100 ETF QQQ had a 24.70% one-year return and a 28.54% annualized three-year return as of September 22. The data shows how sharply the two groups have moved apart.

The biggest change in Indian IT lies in valuation. A historical valuation series places Nifty IT near 18.08 times earnings, against a five-year median of 27.17 times. Large companies also trade at much lower multiples than several global tech leaders. TCS sits near 14–15 times earnings, Infosys near 13–14 times, HCLTech near 19 times, Wipro near 12–13 times and Tech Mahindra near 27–29 times.

The lower prices reflect real concerns rather than a simple market discount.

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