TCS, Infosys: The consensus 12-month forward earnings growth estimate for the two IT firms is currently at 11 per cent on expectations of large-deal led growth acceleration.
The largecap IT stock, also part of the S&P BSE Sensex index, witnessed a breakout in February 2023 from the earlier high of Rs 4,045 recorded in January 2022. It hit a record high of Rs 4,045 on January 18, 2022, but failed to hold the momentum. It later witnessed a price-wise correction, which took the stock towards 2,900 levels in September 2022 before bouncing back.
Cognizant's results and commentary were weaker than most large-cap Indian IT Services companies, which have started talking about bottoming out (TCS) and green-shoots (Wipro).
Indian IT companies have seen an upward trend in the last three months, particularly in December, following the Federal Reserve s December 2023 release, which hints at the possibility of three rate cuts in the calendar year 2024, implying a reversal in the rate cycle.
The IT behemoth has granted an extension until the upcoming month, they have emphasized that this extension will be the last, and any failure to adhere to the directive will result in significant repercussions.