Nifty IT rises 1.5% in a weak market; TCS, HCL Tech, Infosys among top gainers

livemint.com:

Track Live Market Updates Here The Nifty IT index has seen some consolidation in the recent past. The index is down about a per cent in the last one month against a nearly 3 per cent rise in the benchmark Nifty 50. However, over a longer timeframe, Nifty IT has showcased stronger performance compared to Nifty 50.

For instance, in the last three months, Nifty IT surged by 11 per cent, surpassing the 7 per cent increase seen in Nifty 50. Similarly, over the last six months, Nifty IT has recorded a gain of 13 per cent, slightly outpacing the 12 per cent gain observed in Nifty 50. The IT sector has been grappling with low demand amidst an economic slowdown and higher interest rates in the US.

Brokerage firm Nirmal Bang Equities sees "further downside risk to earnings for the Indian IT services industry for both FY25 and FY26 as current revenue assumptions seem aggressive in the context of industry commentary, the timing of turnaround in growth, prospects of US interest rate trajectory and uncertainty around US economic policies consequent to the presidential elections." Also Read: IT sector outlook: Worst may not be over; Nirmal Bang sees earnings downside risk for FY25-26 "We expect 4-7 per cent constant currency (CC) revenue growth guidance by both Infosys and HCL Tech. Even this may be at risk if the Fed funds rate is not cut materially or if enterprise customers freeze up due to US election uncertainty. We see ‘slower for longer’ demand conditions through 2024 that could pare consensus earnings expectations," Nirmal Bang said in a report on March 11.