9 out of 10 Nifty IT stocks hit 52-week high; is the investor exuberance on IT overdone? Here's what experts say

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Wipro, HCL Tech, Tech Mahindra, LTIMindtree, Coforge, Persistent Systems and L&T Technology Services - simultaneously achieving their respective 52-week highs. The robust surge in IT stocks played a pivotal role in propelling the Nifty 50 and the Sensex to attain new all-time highs on Monday. The Q3FY24 numbers of several Indian IT firms were not as bad as analysts had feared.

Analysts expected the Q3 number of Indian IT players to be weak on uncertain demand scenarios and furloughs. But the numbers of TCS, Infosys and HCL Tech came as a relief. Also Read: TCS vs Infosys vs Wipro vs HCL Tech: Which stock to buy after Q3 results 2024? The sequential constant currency (CC) revenue performance of TCS, Infosys, HCL Technologies and Wipro were better than estimates.

This gave a boost to their stock prices and raised hopes that the worst may be behind for the IT sector. Also Read: Is the glass half full for Tier-1 IT firms? Deepak Jasani, Head of Retail Research at HDFC Securities observed that IT stock results have outperformed the low expectations from them so these stocks are rising after the previous underperformance. "The results of these companies reflect their focus on cost management and the medium-term growth trajectory seems protected despite the recent troubles," Jasani pointed out.

Also Read: Nifty 50 takes just 26 days to jump from 21k to 22k; Tata Consumer, Bajaj Auto, Wipro jump up to 21% in this period Santosh Meena, Head of Research at Swastika Investmart also highlighted that the large-cap IT stocks surged despite lukewarm earnings, defying market anxieties. While results weren't stellar, they beat subdued expectations, and encouraging management outlooks fueled the rally, he said. Shrey Jain, Founder and CEO