New Delhi, Feb. 16 -- Uncertainties surrounding rate cuts and the escalation of tariff wars will influence the sentiments in the near term and prolong the information technology (IT) sector recovery, said a report by Mirae Asset Sharekhan.

In the short run, both global and domestic factors will impact the IT sector recovery, the report added.

However, the report added that the medium- and long-term outlook for Indian IT companies remains positive as enterprises are expected to gradually raise their discretionary spending.

The report added that management commentaries reflect a gradually improving macro environment with green shoots emerging in discretionary spending, especially in Banking, Financial Services, and Insurance (BFSI), whil...