Time-wise correction due in large-cap IT stocks; TCS, NIIT Tech top picks

Though analysts remain bullish on the sector, they caution against the sharp rally seen thus far in CY18

A number of information technology (IT) companies have announced their earnings for the March 2018 quarter, which were mostly mostly in line with the analysts’ expectations. In some cases, the companies tweaked the guidance for financial year 2018-19 (FY19) to reflect the challenging business environment.

Infosys, for instance, revised the EBIT margin guidance for FY19 to 22-24 per cent from 23-25 per cent (FY18) earlier. However, the net profit and revenues grew 2.4 per cent and 5.6 per cent, respectively year-on-year during the recently conclude quarter. Sequentially, the net profit declined 28.1 per cent and revenues grew 1.6 per cent.