Jefferies upgrades India's IT services rating from underweight to neutral
Jefferies, a global investment bank, just bumped up its rating for India's IT services sector from "underweight" to "neutral."
This comes after the sector took a 25% hit this year, with giants like TCS, Infosys, HCLTech, and Wipro dropping 35% to 50% from their recent highs.
Jefferies cites AI concerns, adds Infosys
The main reason for the slump? Concerns about artificial intelligence shaking things up.
But Jefferies says there might be a tactical upside if AI-related trading slows down.
Interestingly, top IT stocks are not reacting as sharply to bad news lately, maybe hinting at a bottom.
The bank even added Infosys to its model portfolio and raised its weight in Coforge in its model portfolio by pulling back from other sectors.
Indian IT could rebound, investors optimistic
Foreign investors are feeling more optimistic now, and recent economic data looks good too.
All this suggests the Indian IT sector could be heading for better days ahead.