New Delhi, Nov. 6 -- Domestic brokerage firm Anand Rathi believes Indian IT companies could emerge as beneficiaries of the rising capital expenditure burden on global technology giants, as investors increasingly favour asset-light businesses with strong free cash flow (FCF) generation. The brokerage sees attractive risk-reward opportunities in Indian IT stocks, with Tech Mahindra, LTIMindtree, and Mphasis among its top picks.

In its latest report, the brokerage said the AI infrastructure buildout was becoming increasingly capital-intensive amid accelerating demand. While concerns initially centred on leveraged AI infrastructure providers such as CoreWeave, with its credit default swap (CDS) spreads rising to around 1,100 basis points aga...