LTIMindtree, Infosys, Tech Mahindra rise; heres everything you need to know
At around 10:05 a.m., the S&P BSE Information Technology index was up by 2.49 per cent or 840.44 points, at 34,594.21.
Information Technology (IT) indices, S&P BSE Information Technology, and Nifty IT were rising in early trade on Thursday, December 14. Heavy buying in the IT pack was seen after the renowned global business research consultancy, HFS Research, said that the IT budget of IT firms' was expected to jump in 2024.
At around 10:05 a.m., the S&P BSE Information Technology index was up by 2.49 per cent or 840.44 points, at 34,594.21. Similarly, the Nifty IT index was higher by 2.63 percent, or 846.9 points, at 33,913.55. Even the top 5 gainers on NSE were from the IT pack—LTIMindtree, Tech Mahindra, Infosys, HCL Tech, and Wipro—which rose between 3.19 per cent to 2.74 per cent.
In its report, HFS Research said that in the calendar year 2024, IT companies' budgets are likely to rise by 9 per cent as against 2 per cent growth in 2023. Macquarie Capital expects the budget growth between 2 per cent to 4 per cent. Meanwhile, S&P Global expects good growth in most verticals in 2024.
As per Zee Business research, following are the reasons for the bullish view on the IT sector are:
-Stalled projects are expected to start again.
-Expectations of a faster recovery in North America than in Europe.
-There is a possibility of a change in the guidance of IT companies.
-Enterprise clients are ready to spend new money on technology.
A big investment is expected in machine learning and Gen AI.
The year 2023 has been tough for IT companies due to factors like geopolitical tensions, banking debacles, and rate hikes by central banks in Europe and the US. Big names like Accentures, Infosys, Wipro, and HCL Tech also cut their revenue guidance in 2023, which dented market sentiment and lowered confidence in the sector.
IT stocks' performance in 2023
In 2023 so far, the Nifty IT index has gained over 18 per cent and the S&P BSE Information Technology index has gained over 20 per cent. In the same period, Nifty 50 has risen over 16 per cent while the S&P BSE Sensex has slipped marginally by 0.13 per cent.
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