E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

Iran Imports $10 Million Worth of Goods in Crypto (Report)

August 10, 2022

Smoking Meat Finds Natural Home In The Cloud

August 9, 2022

March session in Kashmir 2022 and Jammu and Kashmir schools? JKBOSE moots proposal – Details

August 9, 2022
Facebook Twitter Instagram
E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
Facebook Twitter Instagram
E Amazings
You are at:Home»Business»IT sector: Strong demand to continue, but stance remains cautious; Infosys, Tech Mahindra top buy ideas, avoid this IT stock
Business

IT sector: Strong demand to continue, but stance remains cautious; Infosys, Tech Mahindra top buy ideas, avoid this IT stock

Paul EasterBy Paul EasterJuly 16, 2022No Comments2 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email


IT stocks remained under pressure this entire week after IT behemoth TCS missed street’s estimates. Last Friday, Tata Consultancy Services (TCS) reported a 5.2 per cent rise in the June quarter net profit to Rs 9,478 crore, restricted by the impact of annual wage hikes and promotions that took operating profit margins to multi-quarter lows. It was operating profit margins of the

Tata Group company slid to 23.1 per cent, much lower than the aspirational band of over 26 per cent which hurt the profit growth.

As TCS Q1FY23 numbers came weaker than expected, the IT sector remained under pressure, which was reflected in the IT indices. Nifty IT remained the top loser with 6.2% cut on the NSE

in the week ended on July 15, while the BSE Information Technology ended lower by 5.8% on the BSE during the same period.  

Meanwhile, global brokerage firm Nomura has maintained a cautious stance on the IT services sector. It expects significant moderation in the revenue growth rate of Indian IT companies in FY24F vs FY23F.

Nomura’s bearishness of the sector finds relevance in margin headwinds for large-cap IT, given supply-side pressures, particularly due to higher-than-usual salary hikes in onsite locations, high attrition and return of discretionary spends like travel.

“FY23F will be marked by more margin disappointment and FY24F by revenue growth disappointment, both of which need to be factored in by consensus adequately,” it said.
IT stocks to buy

Speaking of stocks to buy from the IT space, it prefers Large-cap over midcap IT shares. It recommended Infosys and Tech Mahindra as its preferred stock picks, while it suggested avoiding TCS stock, calling it a top ‘reduce’ idea.  

Earlier, ISG (Information Services Group), in the 2Q CY22 Index call attended by the global brokerage, ISG noted that macro uncertainties continue to rise significantly which is likely to weigh on tech budgets in CY23E. It expected some pull-back on tech budgets in CY23E.  

“Slow-down in hiring by big tech companies and cautiousness amongst enterprises continue to point towards increased uncertainty in the near to medium term,” the ISG underlined.  





Source link

Paul Easter

Related Posts

March session in Kashmir 2022 and Jammu and Kashmir schools? JKBOSE moots proposal – Details

By Paul EasterAugust 9, 2022

Ashish Kacholia stock: This packaging company’s shares hit new lifetime high on Monday; brokerages recommend Buy – check price target

By Paul EasterAugust 9, 2022

Stock Markets: REVEALED! Why world economies fearing recession but India is emerging even stronger

By Paul EasterAugust 9, 2022

This American tech company joins ONDC in major boost to government’s effort to reshape e-commerce landscape

By Paul EasterAugust 9, 2022
Add A Comment

Comments are closed.

Our Picks

Iran Imports $10 Million Worth of Goods in Crypto (Report)

By Paul EasterAugust 10, 2022

Smoking Meat Finds Natural Home In The Cloud

By Paul EasterAugust 9, 2022

March session in Kashmir 2022 and Jammu and Kashmir schools? JKBOSE moots proposal – Details

By Paul EasterAugust 9, 2022
Recent Posts
  • Iran Imports $10 Million Worth of Goods in Crypto (Report) August 10, 2022
  • Smoking Meat Finds Natural Home In The Cloud August 9, 2022
  • March session in Kashmir 2022 and Jammu and Kashmir schools? JKBOSE moots proposal – Details August 9, 2022
  • Ethereum Merge Attracts Institutional Investors: Report August 9, 2022
  • Multas a los vendedores ambulantes aumentaron durante el primer año del DCWP August 9, 2022
  • Ashish Kacholia stock: This packaging company’s shares hit new lifetime high on Monday; brokerages recommend Buy – check price target August 9, 2022
  • Stock Markets: REVEALED! Why world economies fearing recession but India is emerging even stronger August 9, 2022
Archives
  • August 2022
  • July 2022
  • June 2022
Facebook Twitter Instagram Pinterest TikTok
  • Home
© 2022 E Amazings - All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.