Synopsis
A study done on the IT companies that have a market capitalisation of more than Rs 5,000 crore showed none of the Indian IT giants could make it to the Top 5 in terms of highest 10-year returns.
Agencies
IT companies have performed exceedingly well in last one year, surpassing the returns of last 5 years.
In 2020, BSE IT and BSE Healthcare indices outperformed other sectoral indices with gains of 56 per cent and 61 per cent, respectively. During the same period, the benchmark Sensex rose 15 per cent. Stocks from both the sectors have seen a phenomenal run.
India is moving towards becoming a digital economy. Being one of the fastest emerging sectors, IT has shown global reach, lower risk, high- quality infrastructure, and connectivity that contributes immensely to the Indian economy. Its growth is escalating due to components such as BPO and government initiatives such as Digital India, MeitY Startup Hub (MSH).
The breadth of the market was extremely weak as nearly four stocks fell for every that rose on the National Stock Exchange. All sectoral indices on the NSE also ended in the red.
By Sandeep Singh
Domestic equity benchmark Nifty50 has recovered some 92 per cent from last year s lows, when the imposition of a lockdown to curb the spread of the Covid pandemic in the country spooked investors.
The recovery in the markets ever since has been driven by optimism around the development of Covid vaccines and a gush of liquidity that has fueled higher foreign institutional investments, say analysts.
Nifty IT and Pharma indices have rebounded 136 and 99 per cent, respectively, during this period.
In 2020, the S&P BSE Healthcare, S&P BSE IT and S&P BSE Teck indices which gauge the performance of healthcare, technology, media and telecom sectors – gained 61.45 per cent, 56.68 per cent and 43.84, respectively, easily beating the 30-scrip Sensex s gain of 6,497 points, or 15.75 per cent.