Are IT stocks a good contrarian bet from a one-year perspective?

Despite the ongoing selloff and the global macroeconomic stress, analysts say that the IT sector still remains a preferred bet from a long-term perspective

The Nifty IT has been one of the worst-performing indices on the bourses this calendar year. Rising concerns of a potential global recession, which investors fear can dampen demand for export-facing domestic information technology (IT) giants, have sent the index down over 30 per cent on a year-to-date basis.

By comparison, the Nifty50 Index has shed 2.8 per cent during the period, reveals data by ACE Equity. Top losers from the index include Wipro, Tech Mahindra (TechM), Coforge, and Mphasis, which have corrected 38-44 per cent so far during this period.

Analysts now view the pack as a good contrarian