{"id":9107,"date":"2022-06-10T10:56:27","date_gmt":"2022-06-10T05:26:27","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=9107"},"modified":"2022-06-10T10:56:27","modified_gmt":"2022-06-10T05:26:27","slug":"indian-it-to-grow-above-pre-covid-levels-stocks-may-rally-up-to-47","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/indian-it-to-grow-above-pre-covid-levels-stocks-may-rally-up-to-47\/","title":{"rendered":"Indian IT To Grow Above Pre-COVID Levels; Stocks May Rally Up to 47%"},"content":{"rendered":"\n<p>The <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-it-index-.NIFTYIT?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Nifty IT<\/a> <a href=\"https:\/\/www.tickertape.in\/blog\/stock-market-index\/\">index<\/a> has tumbled ~25% so far in 2022. <a href=\"https:\/\/www.tickertape.in\/blog\/filter-it-stocks-using-tickertape-screener\/\">IT stocks<\/a> have corrected sharply owing to broad market weakness and US\u2019 prolonged slowdown in IT spending.<\/p>\n\n\n\n<p>The fall was triggered by <a href=\"https:\/\/blog.tickertape.in\/how-do-fdi-fpi-and-fii-differ-from-each-other\/\" rel=\"nofollow noopener\" target=\"_blank\">foreign portfolio investors (FPIs)<\/a> selling their holdings. According to NSDL, FPIs liquidated stocks worth over Rs 16,000 cr. from the IT sector amid a volatile rupee.<\/p>\n\n\n\n<p>As per JM Financial Services, this correction has cooled off valuations after the strong re-rating throughout the last 18 months.<\/p>\n\n\n\n<p>The brokerage said, \u201cWe continue to be backers of \u2018higher than pre-COVID growth\/multiples\u2019 for Indian IT with increased resilience of global delivery and increasing attractiveness for \u2018offshore delivery\u2019 as clients seek more cost efficiencies in a high inflationary environment\u201d. Their top IT picks among tier I techs are <a href=\"https:\/\/www.tickertape.in\/stocks\/infosys-INFY?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Infosys<\/a> and <a href=\"https:\/\/www.tickertape.in\/stocks\/hcl-technologies-HCLT?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">HCL Technologies<\/a>, PSYS and MPHL amongst mid-tier techs, and FSOL and ZENT amongst small cap techs.<\/p>\n\n\n\n<p>According to JM Financial analysts, cross currency headwinds will drag down the reported USD revenue growth by 175-250 <a href=\"https:\/\/www.tickertape.in\/blog\/bps-meaning\/\">bps<\/a> in FY 2023. They said, \u201cIndian tech companies enjoyed favourable cross currency gains through both FY21 and FY22 which aided reported USD revenue growth for the periods. However, currency moves in recent months will likely pull down reported USD revenue growth by 175-250 bps across Tier I techs. Although the adverse cross currency moves will pull down the reported USD revenue growth for the Indian IT stocks, the net impact on operating margins would be slightly positive in case the current exchange rates are under control.<\/p>\n\n\n\n<p>Inflation and weak global cues continue to be a concern as clients IT spending takes a hit. Concerns about the US <a href=\"https:\/\/www.tickertape.in\/blog\/3-investment-ideas-in-recession\/\">recession<\/a> are not helping either. However, as per analysts, Indian and global techs suggest that clients are committed to their initiatives.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Nifty IT index has tumbled ~25% so far in 2022. Nonetheless, the Indian IT sector is expected to grow above pre-COVID levels despite adverse cross currency moves.<\/p>\n","protected":false},"author":27,"featured_media":9109,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[10,1744],"tags":[1643],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/06\/7.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9107"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=9107"}],"version-history":[{"count":3,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9107\/revisions"}],"predecessor-version":[{"id":9112,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9107\/revisions\/9112"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/9109"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=9107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=9107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=9107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}