Axis Securities lists KPIT Tech and Persistent Systems as top Tier-2 IT sector picks post Q1 earnings

The Indian IT services sector has demonstrated improved performance in the June quarter (Q1FY25), signaling a revision in demand and stabilization of uncertainties in key global economies. While there is a faster recovery in AI use cases, ER&D, and other emerging technologies, discretionary spending remains cautious due to ongoing macroeconomic concerns, said brokerage house Axis Securities in its recent IT sector review note.

Post the Q1 earnings, Among Tier-1 tech companies, the brokerage likes Infosys and Tech Mahindra, while KPIT Tech and Persistent Systems are its preferred picks within the Tier-2 segment.