Thursday (September 14) turned out to be the best day in five months for the Nifty IT index. From April 2023 lows of 26,822.10, the index was up 24 percent as compared to Nifty gaining 14 percent during the same period.
In the current session, the Nifty IT index rallied a percent to hit a 52-week high of 33,240.20. L&T Technology Services shares were leading the 10-pack index, rising 3 percent, followed by Persistent Systems, Tech Mahindra gaining 2 percent each.
Investors saw some correction in the IT Index as compared to the benchmark Nifty 50 as the Q1FY24 performance of IT stocks was not encouraging. The management of most of the IT companies remained cautious for the short term as global macro challenges, concerns in the US and also clients delaying signing deals impacted sentiments, said Nirvi Ashar – Fundamental Analyst at Religare Broking.
“Further, from the past 1-2 months, IT index has rebounded and is supporting benchmarks to inch higher and touch new highs because we are seeing buying interest of investors in IT on the back of comfortable valuation and continuous demand as well as companies announcing signing of large and mega deals,” Ashar said.
In the near future, continuous demand for cloud, digitalisation, Artificial Intelligence, cyber security, etc. will drive growth, as per the analyst. “Thus, we expect the momentum for IT index to continue.”
Amongst the stocks, TCS, HCL Tech and Infosys remained the analysts’ top picks.
According to market expert Ravi Singh, “CNXIT is witnessing some profit booking after touching its all time high, taking cues from the overall strength in benchmark indices and global markets. It may touch the levels of 30000 in this momentum.”
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Reference Link:- https://www.cnbctv18.com/market/nifty-it-index-hits-52-week-high-ltts-techm-rise-tcs-hcl-tech-infosys-among-top-picks-by-analysts-17802591.htm/amp