Choice names Coforge, Persistent, Tech Mahindra top IT picks

Choice Institutional Equities studied several Indian technology companies.

It believes companies working in AI, cybersecurity, cloud, data and modernization may benefit from current spending.

It said banking, financial services and insurance is a relatively strong area.

The brokerage selected Coforge, Persistent Systems and Tech Mahindra as its favorite stocks.

It gave Buy ratings to Coforge and Persistent Systems.

It gave an Add rating to Tech Mahindra.

Choice also warned that AI could help companies do more work with fewer resources.

This and outcome-based pricing could make it harder for technology companies to turn spending into revenue.

It gave lower ratings to several other IT companies.