TCS, Hexaware, HCL, Infosys outperform the broad market in last month

MUMBAI: Shares of companies in information technology sector have done better than the broad equity markets in the month ended March 7. BSE IT index – representative of the information technology sector – has delivered 10.62% returns as against a loss of 1.15% by BSE Sensex that represents broader market.

Tata Consultancy Services (TCS) was the biggest gainer with gains of 16.01% followed by Hexaware Technologies (15.88%) and HCL Technologies (15.14%). Infosys Technologies has 45% weight in BSE IT and has gained 8.3% in last one month.

Financial Technologies is the only constituent of BSE IT that has given negative returns with a loss of 23.59% in last one month.

In the December quarter large IT companies have done well. All four IT companies –Infosys Tech, Wipro, TCS, HCL Tech – have reported increase in revenue quarter on quarter.

Infosys led the pack with 5.7% increase in INR terms. A possible recovery in USA economy is has improved the investor sentiment in IT stocks.

Rupee against US dollar, too have come down from Rs 53 to Rs 55 which indicates positive macro economic environment for exporters. Though the fundamentals look promising, it is the time to go slow on these stocks.

“As the prices have moved up a lot in short span, it is the time to book profit,” says Apurva Sheth, technical analyst with JHP Securities.