Infosys Jefferies' only IT pick on growth visibility, valuations

Mumbai: Jefferies said it will remain selective on Indian IT stocks based on the companies' revenue trend in the fourth quarter, while management commentary points to a weaker-than-expected growth outlook in FY25.

The brokerage said Infosys is its only pick citing higher near-term growth visibility and reasonable valuations.

Jefferies downgraded its ratings on LTI Mindtree and Coforge to underperform on the back of rising uncertainty in their growth and margin outlooks.

It prefers Tata Consultancy Services (TCS) over HCLTech citing the latter's weak growth outlook in the near term.

The Nifty IT index has declined 6.14% so far in 2024, as against a 2.6% up-move in the Nifty. The index fell about 5% in the past month, while the Nifty dropped only 1.5% in the period.