The 50-member S&P BSE Information Technology (BSE IT) Index jumped to a record high this week, taking its advance since the end of March to more than 40%
Thus far in the month of July, the Nifty IT index has outperformed the market by surging 19 per cent as against Nifty 50 index which was up 8.25 per cent during the same period
Sectorally, IT stocks took the biggest knock as the Nifty IT index declined 3.5 per cent to 13,293.70 levels. Nifty Bank lost 566 points or nearly 3 per cent to 19,068.50 levels
Telecom segment growth and margin recovery may not fructify soon
Infosys, Tech Mahindra and HCL Technologies were down in the range of 5 to 6 per cent in early morning trade today.
Higher attrition, elevated sub-contracting costs and pricing pressure are likely to negate benefits from a weak domestic currency
The index had witnessed 10 per cent correction from June, 2019 and an upside of over 5 per cent in the past two sessions has strengthened the positive view on the technical charts
Thus far in the month of May, Nifty IT index was up 7% as compared to 1.8% rise in the Nifty 50.