- The Nifty IT index has gained over 16% so far this month, marking its best monthly performance since July 2020, when the index had gone up 22%.
- Shares of Persistent Systems, HCLTech and LTM have gained between 20% to 25% this month so far, while those of TCS, Tech Mahindra, Coforge, Mphasis and Infosys are up between 10% to 20% for the month.
- CEO Sudhir Singh stated that financial year 2027 is going to be an 'exceptional year' for Coforge and the upcoming three quarters will also be robust.
- Jefferies has upgraded its stance on the sector from 'underweight' to 'neutral', adding Infosys to its model portfolio and increasing its weightage on Coforge.
- Oracle Financial continues to remain the best performing IT stock on a year-to-date basis, with a 45% advance.
- The global AI trade, the primary reason behind the battering these legacy IT stocks took in the first six months of the year, is now coming under question.
The Nifty IT index has gained over 16% this month, marking its best performance since July 2020, when it rose 22%. Major contributors include TCS and Coforge, with shares of Persistent Systems and HCLTech also seeing increases of 20% to 25% this month.1234
CEO Sudhir Singh expressed optimism about the company's future, stating that financial year 2027 will be an 'exceptional year' for Coforge, supported by strong quarterly results and the positive impact of the Encora acquisition.
The Nifty IT index's performance is a significant turnaround from the first half of the year, where legacy IT stocks faced challenges due to the global AI trade. Jefferies has upgraded its stance on the sector, reflecting renewed confidence in IT stocks.
As the market continues to evolve, the Nifty IT index remains a focal point for investors, with expectations of sustained growth in the coming quarters.
“The Nifty IT index has gained over 16% this month, with shares of Persistent Systems, HCLTech, and LTM rising between 20% to 25%. Jefferies has upgraded its stance on the sector from 'underweight' to 'neutral', adding Infosys to its model portfolio.”
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