Jefferies upgrades Indian IT Sector From Underweight, Adds Infosys To Model Portfolio

The global artificial intelligence (AI) trade that fuelled markets over the past year is beginning to lose momentum, prompting foreign investors to rethink their positioning in India, according to Jefferies. After meeting more than 50 foreign portfolio investors, the brokerage said investor sentiment towards India has turned more constructive. They have now raised the rating on IT to ‘Neutral.’

Concerns over AI spending, valuations and returns have intensified globally. Reflecting that shift, Jefferies has raised Indian IT services to ‘Neutral’ from its long-standing underweight stance. They have added Infosys to themodel portfolio. It continues to prefer lenders, power, real estate and industrials as its key overweight sectors.