IT stocks: A comeback which just needs a bit more confirmation; 7 stocks with an upside potential of up to 23%
Synopsis
Just before the expiry of the June series contract, bulls were seen in a segment of the market which has been long ignored by them — IT stocks. Because the upward movement was taking place at the end of expiry, one could not rule out the element of short covering. If one looks a bit deeper in the trend in IT stocks, two things have become clear. That while the news and opinion has been negative, the price action has not been so bad as has been painted. Now let's look at what happened in the IT sector and why there could be a case for contrarian buying. Yes, the sector has some headwinds which not many had thought would appear two years back. But the bigger question is whether this phase of underperformance is about to get over or not. It might be time to shed the bias of negativity around large IT players.
How would you define the Indian IT sector? Probably it would largely depend on when you have entered the stock market. If one has entered the stock market recently in the covid period, your view would be based on your experience of what you have been hearing, both from the street and management, especially in the recent past. Out of the last four years, more than two and a half years, both the news and opinion by the management and the street
ETMarkets.com
14 mins read
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