Stockgram

Global brokerage firm Bernstein has listed Infosys as its top pick among large-cap IT companies, and Coforge as its preferred choice among small- and mid-cap (SMID) IT stocks.





According to Bernstein, Infosys has over 30% exposure to the BFSI (Banking, Financial Services, and Insurance) sector, while Coforge has more than 50%.





Among large-cap IT firms, Bernstein expects Infosys to outperform peers in both revenue and margin stability.





For Coforge, it expects high-teens growth over the medium term.





The brokerage maintains a bullish view on the IT sector, expecting potential earnings upgrades and improved guidance through FY26.





Demand from financial services remains strong this quarter, supported by stable to slightly increased budgets, particularly in capital markets and banking.





Deal activity has picked up across the sector, with total contract value (TCV) for large-cap IT companies rising 20% quarter-on-quarter in Q4FY25.





Additionally, AI adoption is beginning to yield real efficiency gains across the industry.





The Nifty IT index was trading with gains of 1.44% on Friday. All index constituents are trading with gains.





LTIMindtree is the top gainer on the Nifty IT index, followed by Infosys, Persistent Systems, Coforge, Tech Mahindra, and HCL Technologies.





Shares of both Infosys Ltd. and Coforge Ltd. are trading with gains of 2% each on Friday.