High attrition, employee cost casts spell on IT stks; buy on dips: Analysts

Information technology (IT) sector stocks have been on a downward spiral thus far in 2022 with the Nifty IT index slipping over 7 per cent on the NSE, underperforming the benchmark Nifty50 index that has moved up over 2 per cent during this period. The index has been the worst hit amongst its peers on the NSE. 

The nervousness in the IT stocks, analysts believe, is on account of rising employee costs at a time the business growth has been modest year-on-year in the December 2021 quarter (Q3FY22).

“High attrition and high employee costs are taking a toll on large