2022's worst-performing sector may be

the new 'IT place' for investors

"Revenues of Tier-1 IT came in above expectations, with

the exception of Wipro. This beat was aided largely by an
increase in pass-through revenues. Revenue growth has
slowed down to low-teens across companies and should
move down further in the subsequent quarters," said
brokerage Kotak Institutional Equities
NEW DELHI: After facing bear hammering in 2022, to be
crowned the worst-performing sector, India's IT pack has
risen from the ashes and is busy churning wealth for
investors at a time the market is fraught with issues
ranging from FII selloff, expensive valuations and Adani
rout.

The Nifty IT pack - which is an index of the 10 biggest

information technology companies - has risen 8.5% so far
in 2023, emerging as the best sectoral performer, after
facing the worst selloff last year since the 2008 global
financial crisis.

All of the index constituents are trading with gains ranging

up to 27%. Persistent Systems leads the chart while
India's biggest IT company TCS is up 8% year-to-date
(YTD). HCL Technologies, Infosys and Wipro have risen 3-
7%, shows data available with ACE Equity.
Analysts believe better-than-expected third-quarter
earnings, fading recession fears and attractive valuations
have given a fillip to IT stocks.

"Revenues of Tier-1 IT came in above expectations, with

the exception of Wipro. This beat was aided largely by an
increase in pass-through revenues. Revenue growth has
slowed down to low-teens across companies and should
move down further in the subsequent quarters," said
brokerage Kotak Institutional Equities.

FROM:
Maheshwari
MBA