Turnaround in fortunes of IT stocks
After falling sharply for the past few months, shares of information technology (IT) companies are seeing an uptick, primarily driven by expectations of better earnings for the March quarter and ease in valuations. While the conflict in West Asia has been pinching the overall market as well as the sector, experts believe that IT stocks are pricing in worst-case scenarios.
The Nifty IT index closed 2.5% higher at 31,403.35 points on Tuesday, extending the winning run to the fourth trading session and gaining 8% during this period. Top tier players such as Infosys, HCL Technologies, Tata Consultancy Services, and Wipro closed 2.6-3.7% higher, which also aided the overall market movement.
