Goldman Sachs upgrades Tata Consultancy Services (TCS) to "buy" from "neutral" and raises the Indian IT sector's dollar revenue growth to 15 per cent by fiscal 2015 from 12 per cent, citing stronger demand in the United States/European Union, rise in outsourcing deals and a better deal pipeline.
Goldman Sachs also adds Tech Mahindra Ltd to its conviction buy list.
TCS gains 2.5 per cent and Tech Mahindra is up 2.9 per cent.
Overall 2013 IT budget growth expectations improved by 110 basis points to 4.3 per cent as per Morgan Stanley's CIO survey for October.
The investment bank says the rebound in European budget growth is particularly robust and coincides with improving macro indicators.