(This story originally appeared in on Sep 03, 2022) As crypto evangelists and investors adapt to Indian tax rules and operational protocols, and the virtual currency market stabilises, the focus has now shifted to the much-talked-about Web3 space. Experts say with India having a large number of retail crypto customers and Web3 developers, it’s in … Read more
Mumbai: Analysts expect IT spending in the US to remain mostly resilient in the near term, but advise that investors need not be in a hurry to lap up shares of Indian technology companies despite the recent decline in prices. Though Indian IT companies have reported strong revenue growth in the June quarter, with most … Read more
Overall, structurally the trend remains positive but there is still a lot of catch up left in small caps, said Nooresh Merani, independent technical analyst. Edited excerpts: What has been your assessment of how the market has shaped up?Overall it was a week where we saw a bit of consolidation and now we are forming … Read more
Mumbai: Profitability of large Indian companies that have announced their first quarter results so far is showing signs of being under pressure. Analysts’ earnings per share (EPS) estimates of Nifty for FY23 have been trimmed by 1.85% to ₹858, mainly due to lower-than-expected results from some of the big companies like and . Excluding the … Read more
Mumbai: Morgan Stanley said continued headwinds and earnings downgrade cycle in the information technology sector have rendered the risk-reward unfavourable in the near term. The brokerage has downgraded Wipro and while selectively remaining overweight on , and . “Near-term headwinds and lack of catalysts could keep sector performance under pressure,” said Morgan Stanley. The IT … Read more
Mumbai: Analysts are slashing profit estimates of companies as the impact of the sharp run-up in raw material costs and demand slowdown in rural India are expected to reflect on earnings over the next couple of quarters. Downgrades in earnings estimates by analysts at leading brokerages have outnumbered upgrades in the past four weeks. Out … Read more
NEW DELHI: If there’s a recession in the US economy, can Indian IT services continue to bloom? That’s the question haunting investors in IT stocks ever since the US media started talking about the possibility of a recession. Even when the US Fed Chair Jerome Powell tried to soothe nerves by saying that “we’re not … Read more
Although known to be a resilient sector to invest in times of global macro uncertainty, IT stocks may continue to witness pressure this time. Neelkanth Mishra, India Equity Strategist, Credit Suisse, says he has gone underweight on IT services sector because he sees a never-seen-before challenge of revenues coming under pressure. “The challenge is that … Read more
Month of May was particularly bad for IT stocks, as reflected in about 6 per cent drop in Nifty IT index. The main reason for such a fall is now crystal clear – data released by NSDL shows foreign portfolio investors (FPIs) sold stocks worth over Rs 16,000 crore from the sector amid volatile rupee. … Read more
Macquarie said worries over demand in the IT sector are overdone and all tier-I IT companies are trading in attractive territory after the recent fall in the sector. The brokerage’s optimistic forecast comes soon after recent downgrades of frontline IT stocks by Nomura and JP Morgan. Macquarie has upgraded to outperform and rated and as … Read more