TCS, Tech Mahindra, Persistent Systems among top bets as IT stocks surge 22-92% from their 52-week lows

livemint.com:

Indian stock market: Only a few months ago, a significant portion of market participants exhibited caution towards IT stocks. Their apprehension stemmed from concerns about a potential economic slowdown in the Western markets, which represent a substantial customer base for Indian IT firms. This apprehension was primarily driven by the fear that such a downturn could significantly impact the revenue and profitability of domestic IT services companies.

The concerns were justified to some extent as the Nifty IT pack gave negative returns on a monthly basis for three consecutive months from February to April this year. The Nifty IT pack hit its 52-week low of 26,184.45 on April 17, 2023. Since then, IT stocks have covered a lot of distance.

The Nifty IT index hit its fresh 52-week high of 33,387.30 in morning trade on Friday (September 15). In about five months, the Nifty IT pack has jumped over 26 per cent from its 52-week low. Equity benchmark Nifty50, which is at its record high, is up 20 per cent from its 52-week lows.

Every stock within the Nifty IT index has surged by over 20 per cent from its lowest point in the past 52 weeks. Shares of Persistent Systems have surged 92 per cent from their 52-week low level while those of Coforge have jumped 70 from their one-year low level. HCL Tech share price (up 46 per cent), Tech Mahindra share price (up 30 per cent), Infosys share price (up 27 per cent), Wipro share price (up 24 per cent) and TCS share price (up 22 per cent) have each gained in this order from their 52-week low levels.