US Fed rate cut bets, AI scope boosts IT outlook; Cyient, Persistent Systems, Mphasis among top mid-cap picks

Information technology (IT) stocks have regained steam amid rising interest rate cut bets from global central banks and the booming artificial intelligence (AI) opportunities relevant to the sector. The Nifty IT index has gained 3.2 per cent this week after US Federal Reserve Chair Jerome Powell signalled a rate cut at the central bank’s September meeting.

The NSE Nifty 50 index came off a record high on Wednesday, August 28, as profit booking across many sectors capped further gains in IT stocks. Nifty 50 settled 0.14 per cent higher at 25,052.35, while the 30-share BSE Sensex closed with a gain of 0.09 per cent at 81,785.56. The Nifty 50 has gained 3.8 per cent over 10 sessions, its longest winning streak since October 2020.