On Thursday, shares of TCS (Tata Consultancy Services) hit a 52- week low of Rs 3,003 on the BSE.

Last week, the market price of TCS declined 9 per cent.

In comparison, the S&P BSE Sensex slipped 1.3 per cent and the S&P BSE IT index 1.7 per cent during June last year.

“TCS remains a leader in size and market positioning in emerging technologies. However, considering what we view as low upside potential on revenues and valuations, we prefer to remain on the sidelines,” the brokerage said.

“In conversations with clients, we see continuing investments in technology. Some clients, particularly in Europe, have expressed concerns about the macroeconomic fallout of the ongoing conflict there. But the predominant sense is that technology spending will be resilient. That said, given the macro level uncertainties, we remain very watchful,” the management said.