Despite the fact in the last one year, only negative things have been said about IT companies, look at their stocks performance. Except one large IT stock which had been a perennial under performer, most of the other IT stocks are not very far from the highs they had touched almost two years back. Infact relative performance of some IT is far better than many of the stocks and sectors which have been headlines. While it might be contrarian buy, there is high probability that IT stocks perform better than most in bearish market conditions. Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores.
While IT stocks have been underperforming the broader market for more than a year. But if one looks at the reaction of the street to the Q2 numbers of the TCS, Infy and HCL tech, it is clear that the secular bearish outlook which the analysts have been having for this sector might change soon. For the last one year, If one looks at the recommendations of analysts, it appears that all of sudden they are finding everything wrong with IT stocks. It might be time to be contrarian. Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores.
His analysis suggests the current slowdown to be an entire FY24 phenomenon rather than 1H and the impact possibly extending to FY25 discretionary spends.
After remaining net sellers from April to June, FIIs have poured in Rs 7,101 crore from July till September 15, at a time when management commentary and guidance from IT majors painted a stark picture for the sector, show NSDL data.
“Maybe there was a lull in a couple of quarters in this calendar year wherein they did not get enough orders but the managements kept on indicating that the orders are getting ready and they are not getting released and that situation has started coming in. Many of the mid-tier IT companies have already started confirming that in this particular quarter they have had a reasonably good amount of order inflows coming in.”