Global brokerage firm Morgan Stanley believes the rally in IT stocks is not over yet and backs stocks such as Infosys and TCS as top picks. 

What The Brokerage Said: The brokerage said the time is not right for investors to lighten their overweight positioning in IT stocks. The research firm believes the revenue upgrade cycle will continue which should keep the earnings multiples high. The uptick in Banking, Financial Services and Insurance (BFSI) spending is likely to keep high growth expectations for FY26 intact. 

Brokerage Calls: Morgan Stanley gave an "overweight" call on TCS and raised its target price to ₹4,910. 

Infosys also got an "overweight" call with a target price of ₹2,150. 

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HCLTech got downgraded to "equal weight" with a target price of ₹1,840. The limited deal wins kept the outlook soft for HCLTech, the brokerage said. 

LTIMindtree was upgraded to "overweight" with the target price raised to ₹7,050. 

Wipro got an "underweight" call with the target price raised to ₹500.

Tech Mahindra got an "equal weight" call with a target price raised to ₹1,680. 

Price Action: Most of the IT stocks were in the red on Friday. 

Shares of Infosys were down 1.46% to ₹1,904.95 while TCS was down 0.50% to ₹4,453.45. HCLTech was down 1.99% to ₹1,755. 

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