Latest news with #NiftyITIndex
Mint
an hour ago
- Business
- Mint
Nifty IT Index rises 1% amid relief rally: Should you buy or sell IT stocks?
Stock Market today: The Nifty IT Index gained more than 1% during the morning trades on Tuesday amid a relief rally: Is it time to buy or sell IT stocks ahead of Independence Day? The Nifty IT Index opened at 34,589.85 levels, higher than the previous day's closing price of 34,544.65. The Nifty IT Index continued to gain further to an intraday high of 35,072.50, which meant gains of more than 1% during the intraday trades. Tech Mahindra, Persistent Systems, Coforge, and HCL Technologies were among the key gainers that led to the rise. Analysts still say that the concerns around Trump's tariffs still remain, and there remains ambiguity on the issue of whether the recently announced US tariffs on Indian exports cover the services sector or not. This predominantly includes IT services, and these could have second-order effects, impacting demand for both existing contracts and new deal wins. The Indian IT sector's strong reliance on the US market is known, and any negative impact on US economic growth, high interest rates due to inflation, or broader macroeconomic constraints from higher tariffs may lead to higher operating costs, lower profits from operations, and, eventually, a reduction in technology spending and lower commitments from large US-based clients. This would, in turn, have an impact on the growth prospects and income of Indian IT services firms. Tariffs are expected to affect all sectors in the US. With the BFSI segment being one of the largest client verticals for Indian IT, it is likely to see indirect pressures, said Ajit Banerjee, president and chief investment officer at Shriram Life Insurance. Revenue performance was weak in the quarter, with four of the five large IT companies reporting revenue decline sequentially and three of the five on a year-on-year basis. The BFSI vertical held up well and grew 2.7% sequentially and 5.7% year-on-year in dollar terms, while the manufacturing, retail, and healthcare verticals underperformed, said Kotak Institutional Equities . Companies cited various factors for weak demand, including tariff impact and weak discretionary spending across many verticals. The Q1FY26 results reflected the impact of a ramp-down in existing deals and a slower ramp-up of newly won contracts, partly due to trade tariff uncertainty., said Banerjee. While the deal pipeline remains healthy, it is skewed toward cost take-out and large vendor consolidation opportunities, with discretionary spending still subdued. EBIT margins in FY26 estimates are now projected to decline or remain flat. Employee addition is expected to lag revenue growth due to productivity gains from AI adoption. said Banerjee. At present, the sector trades at a 1-year forward price-to-earnings ratio of 23.8 times versus its 10-year average of 22.7 times. Therefore, the present valuations are still higher than 10-year long-term averages, as per Banerjee. It may be prudent to wait for valuations to approach the 10-year average or -1 standard deviation, added Banerjee. Since December 2024, the IT index has struggled to deliver any meaningful performance. The sharp pullback in the index was quickly followed by a steep sell-off, indicating an ongoing battle between buyers and sellers—buyers are aggressively accumulating on dips, while sellers are equally aggressive in selling on rallies, said Kunal Kamble, Sr. Technical Research Analyst at Bonanza. A decisive breakout in either direction will set the tone for the next phase of movement. On the daily time frame, the index is retesting its 'window' area, which typically acts as a strong support or resistance zone. In this case, it is acting as strong support. However, if the index slips below this zone, it could erode buyer confidence and trigger further selling, potentially dragging it down to 33,380–32,689. On the upside, sustained trade above 35,560 could attract buyers and drive the index higher towards 36,010–36,520, as per Kamble. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
3 days ago
- Business
- Economic Times
Foreign investors withdraw Rs 14,422 crore from IT stocks amid July sell-off
Foreign investors offloaded ₹2,425 crore in automobiles in the second half of July and sold over ₹1,300 crore each in consumer durables and construction. Foreign investors heavily sold IT stocks in July, pulling out ₹14,422 crore due to weak quarterly results, headcount reductions, and global macroeconomic uncertainty. This selling pressure extended to other sectors, including financial services, oil and gas, and realty, as investors trimmed exposures and booked profits. Concerns about potential NPA increases in export-oriented sectors further influenced investment decisions. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Information Technology (IT) stocks continued to bear the brunt of foreign selling, with outflows of ₹14,422 crore in the second half of July. These investors pulled over ₹5,000 crore from the sector in the first 15 days of the January and June, the sector saw foreign outflows of ₹30,600 the tariffs currently don't apply to services, the IT sector remained under pressure due to weak June-quarter numbers across the board and significant headcount reductions, said analysts."The valuations in the sector have not yet fully factored these headwinds in addition to the global macro-economic uncertainty," said UR Bhat, co-founder & director, Alphaniti. "Foreign investors are trimming their exposure because IT is one of the sectors with their maximum weightage."The Nifty IT Index fell 11.8% in the last month, against a 4.5% drop in the benchmark Nifty. Foreign investors sold shares worth ₹34,974 crore across 12 sectors in the last 15 days of July, NSDL data showed. These investors dumped ₹6,720 crore in financial services after buying ₹8,946 crore in June."Though the quantum of selling is relatively lesser compared to the buying seen in the earlier three months, FPIs seem to have partially squared off their bullish bets in the index," said Sudeep Shah, vice president and head of technical and derivative research, SBI said banks with large exposure to export-oriented sectors such as chemicals, textiles, gems and jewellery, and auto parts could see an uptick in NPAs due to the tariffs. "Overseas investors are likely to be selective on the scrips that they buy," he and gas and realty sectors saw foreign outflows of ₹4,177 crore and ₹3,684 crore, respectively, in the second half of the booking in Reliance Industries, the stock with the highest weight in the Oil & Gas Index, weighed on sentiment in the period, said Shah."The global implications are significant on the oil markets if India stops buying crude oil from Russia and the uncertainty is weighing heavily on the outlook for these stocks leading to outflows," said investors offloaded ₹2,425 crore in automobiles in the second half of July and sold over ₹1,300 crore each in consumer durables and construction.
Time of India
3 days ago
- Business
- Time of India
Foreign investors withdraw Rs 14,422 crore from IT stocks amid July sell-off
Mumbai: Information Technology (IT) stocks continued to bear the brunt of foreign selling, with outflows of ₹14,422 crore in the second half of July. These investors pulled over ₹5,000 crore from the sector in the first 15 days of the month. Between January and June, the sector saw foreign outflows of ₹30,600 crore. Although the tariffs currently don't apply to services, the IT sector remained under pressure due to weak June-quarter numbers across the board and significant headcount reductions, said analysts. "The valuations in the sector have not yet fully factored these headwinds in addition to the global macro-economic uncertainty," said UR Bhat, co-founder & director, Alphaniti. "Foreign investors are trimming their exposure because IT is one of the sectors with their maximum weightage." The Nifty IT Index fell 11.8% in the last month, against a 4.5% drop in the benchmark Nifty. Foreign investors sold shares worth ₹34,974 crore across 12 sectors in the last 15 days of July, NSDL data showed. These investors dumped ₹6,720 crore in financial services after buying ₹8,946 crore in June. Agencies "Though the quantum of selling is relatively lesser compared to the buying seen in the earlier three months, FPIs seem to have partially squared off their bullish bets in the index," said Sudeep Shah, vice president and head of technical and derivative research, SBI Securities. Bhat said banks with large exposure to export-oriented sectors such as chemicals, textiles, gems and jewellery, and auto parts could see an uptick in NPAs due to the tariffs. "Overseas investors are likely to be selective on the scrips that they buy," he said. Oil and gas and realty sectors saw foreign outflows of ₹4,177 crore and ₹3,684 crore, respectively, in the second half of the month. Profit booking in Reliance Industries, the stock with the highest weight in the Oil & Gas Index, weighed on sentiment in the period, said Shah. "The global implications are significant on the oil markets if India stops buying crude oil from Russia and the uncertainty is weighing heavily on the outlook for these stocks leading to outflows," said Bhat. Foreign investors offloaded ₹2,425 crore in automobiles in the second half of July and sold over ₹1,300 crore each in consumer durables and construction.
Time of India
18-07-2025
- Business
- Time of India
Rich valuations could be a drag on Tech Mahindra stock: Analysts
Mumbai: Tech Mahindra dropped 2.7% on Thursday, emerging as the biggest Nifty loser , after the company's first-quarter results fell short of expectations. The stock closed at ₹1,564.2. Analysts said management expects FY27 revenue growth above peers and a pickup from next quarter, but remain divided over the stock's prospects citing rich valuations. JP Morgan said the stock is at 25 times estimated price to earnings (PE) ratio, which is at a premium to peers and 'bakes in' the margin improvement. The brokerage has a 'neutral' rating on the stock and a target price of ₹1,550, implying a downside potential of 0.9% from Thursday's close. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo The Nifty IT Index declined 1.4% on Thursday, while the benchmark Nifty Index moved 0.4% lower on Thursday. Agencies Among the 10 stocks on the Nifty IT Index, all moved lower on Thursday, dragged by LTI Mindtree, which tumbled 3% ahead of its results. Persistent Systems and Infosys shed 1.9% and 1.7%, respectively. Wipro, Mphasis, and Coforge fell around 1.5% each. HSBC said the stock has factored in a large proportion of the turnaround prospects. "Other than telecom, most of the TechM verticals are around $1 billion size and can grow in the double digits in the long term, which in our view could support premium valuations for the stock," said the brokerage, which has a buy rating on the stock with a price target of ₹1,900. Live Events
News18
11-07-2025
- Business
- News18
Nifty IT Drops 1% After TCS Q1 Miss; Infosys, Wipro, LTIMindtree Extend Losses
Last Updated: The Nifty IT index declined sharply in early trade on Friday, July 11, as investors reacted to TCS' underwhelming June quarter results Nifty IT Index Falls: The Nifty IT index declined sharply in early trade on Friday, July 11, as investors reacted to Tata Consultancy Services' (TCS) underwhelming June quarter results. By 9:30 a.m., the index had fallen 1.2% to 37,902.65, led by heavy selling in large-cap names such as TCS, Wipro, Infosys, and LTIMindtree. In contrast, midcap IT stocks held up relatively better. Commenting on the trend, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, 'The Q1 results of TCS highlight the ongoing challenges for large-cap IT players. However, midcap IT companies are likely to perform better. Investors may consider stocks with fair valuations and strong earnings visibility." TCS reported a 6% year-on-year rise in net profit to Rs 12,760 crore for Q1FY26, compared to Rs 12,040 crore in the same period last year. Sequentially, profit rose 4.4% from Rs 12,224 crore, exceeding analyst expectations. However, revenue from operations grew just 1.3% sequentially to Rs 63,437 crore, reflecting weaker-than-expected topline momentum. Japan-based brokerage Nomura maintained its 'Neutral' rating on TCS but trimmed its target price to Rs 3,780 from Rs 3,820, citing unclear growth visibility for FY26. It also pointed out that the company's constant currency growth lagged consensus estimates and added that meaningful margin improvement is unlikely in the near term. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
