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CLSA, Morgan Stanley urge near-term caution on IT stocks
Thus far in CY25, the Nifty IT index has been an underperformer, slipping nearly 11 per cent as compared to 5 per cent rise in the Nifty 50 index
Sai Aravindh Puneet Wadhwa Mumbai | New Delhi
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Global brokerages CLSA and Morgan Stanley have turned cautious on the Indian information technology (IT) sector and warn that the short-term outlook remains uncertain due to ongoing global economic concerns.
A double whammy for the IT sector sentiment on Thursday was US Federal Reserve's (US Fed's) downgrading of 2025 growth estimates for the economy to 1.4 per cent from 1.7 per cent earlier amid higher inflation.
As a result, the Nifty IT index slipped 1.54 per cent on Thursday in intra-day deals, with Oracle Financial Services, Coforge and LTIMindtree among the top losers. Tech Mahindra fell as much as 2.9
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