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Global brokerage firm JPMorgan has upgraded its stance on the information technology sector to 'neutral' from the earlier bearish view, buoyed by expectations of a pivot on rate cuts by the US Federal Reserve and a favourable base.

Factoring in those expectations, the brokerage has also upgraded its ratings for IT majors like Infosys and L&T Technology Services to 'overweight' while others, including TCS, HCLTech, Mphasis and Persistent Systems are lifted to 'neutral' calls from 'underweight' earlier.

Aided by the upgrades, shares of most IT companies inched higher on January 4, lifting the Nifty IT index around 1 percent higher.

The firm banks on expectations of a pivot in rate cuts to cost-saving measures, pro-cyclicality, near-term generative artificial intelligence (Gen AI) prep work and a very low base of 2023 as major drivers behind the slew of upgrades.

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