IT rally limited to select large-caps, Street cautious

Top-tier IT stocks have sharply gained over the past few trading sessions, with investors seemingly more confident about their prospects. There has been less enthusiasm witnessed for mid-rung IT firms. Large-cap IT stocks were up 5-10% over the last couple of days as the top-four companies have reported their third quarter results. However, one section of the Street remains cautious.

Analysts at Citi Research have observed that while management comments have been balanced and consistent, words like “pent up” and “green shoots” have created optimism among investors.