Tue Eco: ‘omic Tims Markets Looking to buy top IT stocks? Wait for a quarter to get bargains ‘Mumbal: Investors looking to buy shares of technology companies such as TS, Infosys and HCL Tech among others amid the recent weakness ‘ould consider accumulating them after three to sixmonths With the banking and nancial sect developed economies especially the US -a segment that contributes sizeable chunkto the domestic software services exports - under stress, analysts said there is a likelihood of further earnings downgrades in the sector that could weigh dow shares of these ‘companies in the near future the ‘The Nifty IT index, which had hit an all-time high in January ast year, is now down by nearlya third, In March sofa, the index has declined almost 6% after the collapse oftwo US banks end the roubles at Credit Suisse “Globally, BPSI, which is alarge sector, and contributes toa large share of| ‘earnings for Indian IT companies is under stress right now, and theres sti some uncertainty about what kindof rnvray this stress can have," said Sahil Kapoor, market strategist at DSP Mutual Fund. “So it will probably cloud the earnings growth outlook, and that I think will cause some amount of consolidation and correction in the IT space” he sald. Nifty IT 72000 131120.5 27500 Dec 01,2022 Mar 27, 2023Banking, financial services and insurance or BSI Is the largest vertical for Indian technology companies, and brings in 35-40% oftheir revenues on average, with some ofthe smaller companies getting an even lager chunkot ‘their sales oom this sector, ‘Concems over troubles in the US and European financial systems have heightened fears that spending from ths sector is ikely to see a slowdown, ‘which could impact growth for Indian companies. There was anyway ariskof slowdown which was being factored in..the banking crisis has added tothe \wortis in the short-term,” sald Mayur Patel, fund manager for equities at FL. Asset Mangement Kotak institutional Equities sald ina note that technology budgets outlined at ‘the start ofthe calendar year can be toned down to align with increased risks faced by the sector Inthe past month, TCS is down 57%, Infosys has fallen 67% and HCL, ‘Technologies is down 2.3% Shares of small companies have dropped sharper. (Cofoage and Mphasis have slumped over 15%, while Persistent Systems has ectined 8% ‘The recent drop in share prices has eased concerns over steep valuations. The Price to Farnings (PF) atio for most companies inthe sector, which had touched a peak of 25-26 times their one-year forward earnings, has now corrected to about 16-22 times after several months of undesperformance. Stl, ‘their valuations are slightly above their long-term averages. Pick the best stocks for yourself “LA WieeklyTop Picks Fight sokswithS3o 887% Weebly Top Pek Seven stookswitncousiseat idendveldsané = large mideapawith ‘oreimprowimentsnd contnaotadivdend consent sore Usiepetentiaof upto peymestsfor7yeus improvement andupsde woe an potential erupt Ale What doqziiceenits — Largecapsackawith Socks forabighivigend Inlet for other psitepotentiaottoce yeldingportio Isuancecompasie? Two than2%. Lifeanésn0n ie in Issuance ptaerawith "5" “ay an "sreneby sasHpht midesprtocks 2 with Strong Buy ands wna" Tecommendrtone with € vo ros SSehigh ROE and low PG ratios ght ‘cestion