Indian IT rally not over yet, says Morgan Stanley
** India's IT stocks have jumped 12%-40% since early June (vs Sensex's 12% gain) and the rally is not yet over, says Morgan Stanley
** MS says Q1 marks beginning of rev upgrade cycle and sees growth to continue for at least 1-2 quarters on likelihood of US rate cuts this month, pickup in BFSI spending
** Says though IT stocks are expensive, it expects outperformance to continue
** Upgrades LTIMindtree LTIM.NS to "overweight" from "equal-weight"
** Says Infosys INFY.NS, Coforge COFO.NS - also rated "overweight"- and LTIMindtree are its preferred stocks
** Nifty IT index .NIFTYIT off 0.4% and Nifty 50 .NSEI down ~1% today on caution ahead of US jobs data .BO
** IT index has gained about ~20% YTD, while Nifty is up 15%
Reporting by Manvi Pant in Bengaluru
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