Why Are Top IT Stocks So Far From Their All-Time Highs?
About the fall from peaks
Market leaders are not immune to valuation resets.
Even the strongest franchises experience periods where expectations run ahead of earnings.
When growth moderates or uncertainty rises, multiples compress.
🔹 Technology spending cycles are global.
🔹 Currency, client budgets and innovation risks influence pricing.
🔹 Sentiment can shift faster than fundamentals.
Below is the magnitude of correction seen in several frontline counters.
🔹 TCS → about 44% below peak
🔹 Infosys → about 36% below peak
🔹 Tata Elxsi → about 55% below peak
🔹 Tech Mahindra → about 22% below peak
🔹 LTIMindtree → about 35% below peak
🔹 Coforge → about 33% below peak
🔹 KPIT Tech → about 58% below peak
Numbers like these appear shocking when viewed without context.
Yet history shows that high growth sectors frequently move through expansion and digestion phases.
👉 Traders tracking sector momentum often align decisions with Nifty Tips to manage volatility.
Why leaders correct sharply
Premium stocks trade on future optimism.
If that optimism cools even slightly, price reaction can be disproportionate.
🔹 Higher starting valuations
🔹 Global demand uncertainty
🔹 Budget delays from clients
🔹 Fear of technological disruption
None of this automatically signals structural damage.
But it reminds participants that markets constantly re-price narratives.
Investor takeaway
Derivative Pro & Nifty Expert Gulshan Khera says corrections in quality names are part of long-term compounding journeys.
Preparation, allocation discipline and patience determine outcomes more than excitement near highs.
You can continue learning through detailed market frameworks at Indian-Share-Tips.com.
How Did India’s Biggest Investors Build Massive Wealth?
About legendary compounding
Large fortunes in equities rarely emerge from one lucky trade.
They are usually the outcome of process, temperament and multi-decade patience.
🔹 Years of discipline
🔹 Surviving crashes
🔹 Holding winners
Commonly quoted journeys
🔹 Ashish Kacholia → from lakhs to thousands of crores across three decades
🔹 R K Damani → from small beginnings to one of the largest fortunes in the market
🔹 Vijay Kedia → multi-decade growth through conviction investing
The absolute numbers may vary with market fluctuations.
But the framework behind them remains remarkably similar.
👉 Many active participants refine timing and risk using BankNifty Tips alongside long-term strategies.
What separated them
🔹 Ability to ignore noise
🔹 Focus on scalable businesses
🔹 Letting time multiply capital
Compounding needs duration.
Most participants underestimate how powerful uninterrupted time can be.
Reality check
The journey includes deep drawdowns, doubt and boredom.
What looks smooth in hindsight was emotionally demanding in real time.
Investor takeaway
Derivative Pro & Nifty Expert Gulshan Khera believes sustainable wealth is created by process consistency rather than prediction accuracy.
Longevity in markets is the ultimate edge.
Explore more disciplined investing perspectives at Indian-Share-Tips.com.
