Morgan Stanley issued a sector report on Thursday that lifted Wipro Ltd. to “Equal Weight” from “Underweight” while cutting Tech Mahindra Ltd. to “Underweight”. The U.S. brokerage increased its price target for Wipro to INR 265 from INR 216 and nudged Tech Mahindra’s target to INR 1,575 from INR 1,550, citing subdued discretionary spending, modest revenue-growth prospects and limited catalysts for a broad re-rating of India’s information-technology services firms. The recommendations drove divergent moves in early Mumbai trading. Wipro added about 1%, the only notable gainer among large-cap peers, while Tech Mahindra slipped nearly 2%. The broader Nifty IT index remained in the red, extending a decline that has left it roughly 10% lower since the start of 2025. Morgan Stanley said valuations are not compelling given muted earnings expectations over the next two fiscal years, even after the sector’s recent pull-back. It prefers Tata Consultancy Services and Infosys among the large caps and favors Coforge over other mid-tier names. The call contrasts with a separate note from CLSA, which acknowledged weak discretionary spending but predicted a V-shaped recovery, driven by resilient demand from banking, financial-services and insurance clients.