According to CNBC-TV18, major IT sector company HCLTech had a ransomware problem in an isolated cloud environment for one of HCLTech's projects.

As per the business, there was "no impact observed on the overall network due to the ransomware incident," and a "detailed investigation is underway in consultation with relevant stakeholders."

HCLTech has been Downgraded by Kotak

Given the recent surge in the markets, brokerage Kotak Institutional Equities downgraded IT player HCL Technologies on December 19. The brokerage firm feels the rise restricts additional upside in certain IT stocks.

HCL Tech's share price has risen about 11% in December, while the Nifty IT and BSE IT indices have risen approximately 8%."On rollover, we increase fair values by 9-20% and multiples by factoring in lower macro uncertainty." 

The big rise has capped additional gains in a few stocks. "We downgraded HCL Tech to 'add' from 'buy' following a 13% increase in stock price in the last month," said Kotak.

Kotak emphasized that IT players saw a significant decline in demand in FY24 due to a reluctance to commit to new programs in the face of high economic uncertainty, a shift in spending priorities away from Covid-era priorities towards efficiencies and optimization, excess in-house hiring, and a longer sales and ramp-up cycle in mega deals.