New Delhi, April 3 -- Global brokerage firm JPMorgan has taken a cautious stance on the Indian IT sector, favoring select mid-tier companies while reducing estimates for Tier 1 and Tier 2 firms. The brokerage prefers Coforge, Infosys, KPIT Technologies, and Tech Mahindra for the quarter while advising against Tata Consultancy Services (TCS), Wipro, HCL Technologies, Tata Technologies, and Tata Elxsi. It anticipates that fiscal 2026 will reflect modest growth, with guidance unlikely to signal any acceleration.

JPMorgan noted that the fourth quarter is expected to display softer seasonality due to a combination of weak macroeconomic conditions and early signs of deflation in artificial intelligence (AI). While mid-sized IT firms are likely...