Nifty IT jumps 1.3% as Nifty 50, Sensex hit record high led by midcap names: Should you buy, sell or hold?
Coforge, Persistent, TCS, Mphasis, LTIMindtree, Infosys share prices gained up to 4%. The rebound in the IT index comes after having fallen up to 4.7% year-to-date and around 2.5% in Fiscal year, which provides some relief.
The Nify IT index also had underperformed Nifty-50 Index that has risen by around 4.8% year to data and around more than 2% in Financial year 2025 till date . The outlook however remains subdued The subdued outlook of the IT companies that was likely to get reset post Q4 results has not happened amidst uncertain macros during FY25.
The growth reported came muted and margin improvement was not very encouraging, said analysts. The eyes were on growth guidance and FY25 outlook which still remained muted.Also Read- Lok Sabha elections 2024: Indian stock market to be disappointed if BJP falls short of PM's 400-seat prediction— expertsPritesh Thakkar at Prabhudas Lilladher said that FY24 signed-off with another quarter of weak performance within IT services, Although the revenue growth was largely in-line or tad below consensus, the margin improvement or earnings growth was disappointed for selective names.Topline performance is still being impacted by the volatility in the three primary verticals: BFSI, Retail, and Communications.
While most firms in BFSI have reported either muted or positive USD growth (median +1.9% sequentially), retail growth has been sluggish (median negative 2.3% sequentially) as per Prabhudas Lilladher data.Also Read- Go Digit share price gains 7% post moderate listing . Should you Buy, Sell or Hold the stock?Prabhudas Lilladher analyst too said that , the suggested FY25 outlook across the board has been lackluster and has fallen below the anticipated line.
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