Nifty IT

Analysts say the stock price could turn volatile in the near-term as the development comes amid a challenging macro-environment including fears of a potential recession in the US

Thus far in calendar year 2023, the Nifty IT index has outperformed the market by surging 10 per cent, as compared to 0.55 per cent decline in the Nifty 50

According to the technical analyst, since the Nifty IT index trades at 30,870.20, it is on the verge of a positive breakout as it hovers near the key level of 31,255

Given the uncertainty on how the market trajectory may play out ahead, analysts believe investors can rotate allocation from high beta stocks to defensive plays albeit selectively

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As per the technical analyst, the best trading strategy for traders would be to buy Nifty IT either at the current market price or at dips, with a target of 31,500

TCS Q3 results: QoQ decline of 2,200 employees in the total headcount and de-growth of 3.7 per cent in deal bookings at $7.8 billion are indicators that point towards a slowdown, analysts say

TCS Q3 results preview: As per brokerage estimates, TCS may post up to 18 per cent Yo revenue growth to an average of Rs 57,446 crore. The bottom line could rise 10-16 per cent to around Rs 11,046 cr

For FY23, Accenture has maintained its 8-11 per cent growth guidance. This is reportedly the first time since FY17 that the company has not upgraded its full-year guidance after the first quarter

Paytm, Policybazaar, Zomato, and Nykaa have been the worst hit, falling between 50.5 per cent and 60 per cent thus far in 2022

Indian IT valuations, the brokerage and research house argues, are at large premium to history despite material correction from the top

Wipro Q2 results preview: Its margins will likely be weak over the last year, but may improve on a quarterly basis by 20-30 basis points (bps) to 15.3 per cent

Despite the ongoing selloff and the global macroeconomic stress, analysts say that the IT sector still remains a preferred bet from a long-term perspective

However, they have not specified the quantum of the buyback the company could announce. Infosys is scheduled to announce its Q2-FY23 numbers on October 12

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The Nifty IT index dropped 1.8 per cent on Tuesday, extending its two-day slide to nearly 4 per cent

Global growth is expected to moderate from 6.1% in 2021 to 3.6% in 2022, driven by withdrawal of monetary accommodation in major economies, continued supply side shortages and economic damage from war

According to analysts, IT companies have lost their sheen after March quarter results highlighted slowdown in deal momentum, and margin pressure

Accenture's order wins, downward revision in Ebit margin, and the evolving Russia-Ukraine conflict need to be closely watched, said analysts

The nervousness in the IT stocks, analysts believe, is on account of rising employee costs at a time the business growth has been modest year-on-year in the December 2021 quarter (Q3FY22)