Was 2024 indeed better than last year for the big boys of Indian IT?
Subscribe to enjoy similar stories. Bengaluru: India’s top five information technology services companies grew at a slower clip in the first nine months of this year, defying hopes that the $254 billion industry would rebound after reporting its weakest growth ever in 2023. Yet, save for Wipro Ltd, the shares of the remaining four IT services firms—Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, and Tech Mahindra Ltd—have delivered better returns than both the Sensex and the Nifty 50 so far this year.
In 2023, TCS and Infosys stocks fared worse than the Sensex, while the other three outperformed. The Nifty IT index has also vastly outperformed the two benchmark indices, gaining 22.48% in the year through 27 December. The Sensex has gained 8.89% so far this year, and the Nifty 50, 9.53%.
Analysts say investors are loading up on Indian IT stocks in anticipation of a recovery in tech spending by Fortune 500 companies as the US Federal Reserve is set to cut its key interest rates further. The Fed has lowered its interest rates by a percentage point this year but indicated earlier this month that it may opt for fewer rate cuts next year as it battles stubborn inflation. “...
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