Key Points
After a long phase of almost two decades, during Covid there was a sudden phase of expansion in price earning multiples which IT stocks were getting..
Now as nothing is permanent on markets, a phase of mean reversion or readjustment of valuations started after October 21..
It has been more than two years that largecap IT stocks have been going through this and after a gap of a long time, they are showing some early indications at worst might be over..
But because there has been a major technological shift in the last two years, it is a trade that only investors with patience should look at taking..
Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk, and price momentum to generate standardized scores...
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Nifty IT index stocks: Relative outperformance candidates for a volatile market?
24, Jan, 24Nifty IT index is probably among very few sectoral indices which are still below the high they had touched in October 2021. 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 too early to say as short term performance could be many reasons, but the way stocks have reacted to bad news and see sharp upward movement with slightly positive news, it might be worth bringing them back on watch list and shed the bias of looking at all IT stocks with a coloured lens. Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores.
These largecaps have ‘strong buy’ and ‘buy’ recos with upside potential of over 20%
20, Mar, 24After a long period of time, bears are seeming confident. How long they will be able to roam on the street is the question for which answers are being sought. For that it would be better to focus on why the correction is taking place. Whether there is just a profit booking after a long phase of out performance or there are any headwinds which the economy is either facing or is likely to face. The answer is very clear that this phase of profit booking and there are no headwinds, in fact there are more tailwinds of clear policy making. This is not to say that this corrective phase will not continue further, if there is any increase in oil prices, there might be some short term pressure, but the long term story stays intact. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy . The screener applies different algorithms for all BSE and NSE stocks.