Search+Investment IdeasBrokerages stay cautious on IT stocks, while Divi's Laboratories earns bullish long-term outlook.SynopsisBrokerages expressed caution on frontline IT stocks following June quarter earnings. Citi downgraded HCL Technologies to Sell, citing weak software business performance. Motilal Oswal maintained a Sell rating on Tata Elxsi due to margin pressures. Citi reiterated a Buy rating on Divi's Laboratories, seeing long-term growth potential. Analysts highlight slowing growth and expensive valuations across key segments.Brokerage views on frontline IT stocks remained cautious after the June quarter earnings, with analysts flagging slowing growth, weak demand in key business segments and expensive valuations.While Citi downgraded HCL Technologies to 'Sell' and reiterated its 'Buy' on Divi's Laboratories, Motilal Oswal maintained a 'Sell' rating on Tata Elxsi, citing margin pressures and an uncertain recovery in key verticals.Here's what the brokerages said about BYETMarkets.com 3 mins readJul 15, 2026, 09:21:00 AM ISTGift this Story to your friendsFONT SIZEAbcSmallAbcMediumAbcLargeSAVEPRINTCOMMENTContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories & personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions & in-depth stock reportsSubscribe NowETUh-oh! This is an exclusive story available for selected readers only.Worry not. You’re just a step away.What’s Included withETPrime Membership