Nifty IT jumps over 8% so far in 2023; highest among other sectors - what’s aiding the surge in index?
“Despite furloughs and a lower number of working days, the deal wins rose 4.1 per cent quarter-on-quarter (QoQ) and 10.7 per cent year-on-year (YoY),” Motilal Oswal said in its Q3 review report.
The information and Technology sector has been buzzing so far in 2023 as the Nifty IT Index reported a growth of more than 8 per cent – highest among sectors – Year-To-Date. In comparison, the Nifty50 index has declined more than 1 per cent during the same period in 2023.
As per Zee Business research, the growth in the IT segment can be attributed to multiple triggers including the strong demand from clients. The tech companies for the quarter ended on December 31, 2022, declared better-than-estimated deal wins, it added.
The second largest IT company – Infosys got strongest 32 big deal wins in last 8 quarters, while Azim Premji founded Wipro has got 11 big deals during the quarter under review, the Zee Business research also said in a report.
“Despite furloughs and a lower number of working days, the deal wins rose 4.1 per cent quarter-on-quarter (QoQ) and 10.7 per cent year-on-year (YoY),” Motilal Oswal said in its Q3 review report.
The IT companies have reported an average growth of 23 per cent in the December quarter as compared to 17 per cent growth in the previous quarter of this fiscal year, as per research.
Motilal Oswal in its report said, “Considering the weak economic environment and fears of a global slowdown, the enterprise operation mode is shifting toward cost savings and efficiency-driven schemes, will benefit large-cap firms due to their broader scale and end-to-end service offerings.”
In its Q3 review, the brokerage also noted, “The IT companies have witnessed a steady recovery in margins post the H1 wage hikes and easing supply pressure. The attrition rate has cooled off notably across the entire IT pack, while the quarterly annualised rate has fallen even more sharply.”
Big IT companies - YTD return
LTIMindtree up 12.5 per cent
Tech Mahindra up 12 per cent
TCS up 7.3 per cent
Infosys up 4 per cent
Wipro up 3.3 per cent
Midcap IT companies - YTD return
Persistent System up 22 per cent
Emphasis up 13.5 per cent
Coforge up 6.3 per cent
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04:25 PM IST