Nifty IT outperforms Nifty50 in 2 years. What to expect in CY25?
Indian IT sector, represented by the Nifty IT index, has consistently delivered superior returns compared to the broader Nifty 50 index over longer timeframes, underscoring the IT sector's attractiveness to investors seeking long-term value.
Data from StockEdge reveals a compelling performance differential: Nifty IT has returned 27.2% over the past year and a remarkable 55.6% over the last two years, significantly outpacing the Nifty 50's returns of 7.4% and 29.6% respectively for the same periods.
This recent outperformance over the past 3-6 months has been also fueled by a gradual recovery in growth, primarily led by the financial services (BFSI) vertical, aided by easing macroeconomic headwinds and supported by recent rate cuts.
Improving macroeconomic conditions, the progression of the rate cut cycle, and the resolution of uncertainty surrounding the US elections have further contributed to this positive momentum.
“Indian IT service companies are undergoing gradual recovery largely led by BFSI vertical aided by waning macro headwinds and supported by recent rate cuts. Fed commentary in the recent FOMC meet, which has indicated fewer reductions in CY25, has caused jitters since it is likely to act as an impediment to the gradual recovery,” says Shaji Nair, Research Analyst of Capital Market Strategy at Mirae Asset Sharekhan.
Stock Trading
Masterclass on Value Investing and Company Valuation
Stock Trading
Market 104: Options Trading: Kickstart Your F&O Adventure
By — Saketh R, Founder- QuickAlpha, Full Time
