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Amidst the sharp decline in the market, there is one sector where growth is being seen even today. This sector is Nifty IT. Amidst the rise in the shares of LTIMindtree and Mphasis, growth is being seen in this sector today. In fact, international brokerage firm JPMorgan has upgraded the rating on both these stocks.
JPMorgan has set a target price of ₹6,900 per share with an Overwieght opinion on LTIMidtree. This target price is 13% higher than Friday's closing price (₹6114.10) per share.
The brokerage firm has also upgraded the rating on Mphasis and set a target price of ₹3,400 per share with an Overweight opinion. This target price is 19% higher than Friday's closing price. By Monday's afternoon session, both stocks are seeing a rise of more than 1.5%. The brokerage firm has said in this report that these companies can benefit from the boom in banking and financial services in the US and other regions. After the rate cut in the US, there is a big relief on the mortgage and home loans front. If this sector improves, spending on tech may increase during the next 12-18 months. LTIMindtree has an exposure of 35% in the BFSI segment. These two companies have the highest exposure to the US banking industry. Just last month, Motilal Oswal Securities had maintained a Buy rating on LTIMindtree. This brokerage firm had also said that the future of this company is better in terms of growth due to the recovery in the BFSI sector of America. After the rate cut by the Fed, the focus on ERP modernization projects may increase. This will benefit LTIMindtree in the future. This brokerage firm said in a note that American clients are focusing specifically on high priority verticals.
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