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Despite selling pressure across the market, the IT sector remained investors’ preferred choice (barring last two sessions), thanks to the weakening rupee.
In the last one month till October 1, the BSE IT index increased about 3 per cent, as against a 5.5 per cent decline in the Sensex.
At Wednesday’s closing, the sector traded at around 21 times its one-year forward earnings, which is a 30 per cent premium to its historical average valuation of 16 times.
Among the top five IT companies, Tata Consultancy Services (TCS) is trading at about 27 times FY19 estimated earnings — the highest
