Persistent, Coforge to HCL Tech: Why are IT stocks skyrocketing?

livemint.com:

Indian stock market, leading IT stocks are witnessing sharp upside movement during Wednesday deals. The Nifty IT index, a benchmark index for the IT sector on the National Stock Exchange of India, has risen to 2.50 percent, while it was one of the least affected segments during a stock market crash on Tuesday.

Leading IT majors Persistent Systems, Coforge, MPhasis, HCL Technologies, and Wipro have witnessed sharp upside movement since early morning deals. Among top gainers among the Nifty IT pack, Persistent System shares are up by around 6.50 percent, MPhasis shares are up by over 4 percent while Cofgorge and HCL Tech shares have risen over 3 percent.Insights from stock market experts reveal a strategic shift in the current volatile market.

They suggest that the market's heavy fall, triggered by political instability concerns after the Lok Sabha Election results, has prompted investors to make calculated moves. These investors are wisely shifting their investments from the overbought segments to the discounted segments, thereby mitigating potential losses if the market further declines.Also Read: Banking may outperform; Nifty could reach 23,500 by December end, says Trivesh D of TradejiniSpeaking on the reason for the rise in IT stocks amid volatility on Dalal Street, Saurabh Jain, Vice President — Research at SMC Global Securities, said, "Amid volatility in the market, investors are moving their money from overbought segments to discounted segment, and hence we are witnessing upside in safe segments like IT, FMCG, auto, and pharma segment.