IT sector: IT shares have a big role in the market decline today. The IT index, which gave returns of more than 20 percent in the entire year, is down by about 2 percent today. JM FINANCIAL has released a report on the performance of the IT sector this year and Q3 earnings estimates of the IT sector. According to this report, slow revenue growth is possible in the IT sector. The effect of furlough will be visible on revenue growth. Let us tell you that Furlough means leave without pay due to economic slowdown. JM Financial says margins may remain stable barring the impact of salaries. Cross currency will not have any bad effect. The weakness of the rupee will eliminate the cross currency effect. The IT sector will benefit from the weak rupee against the dollar. Margin improvement of up to 10-50 basis points is possible in the top 5 companies. Impact of salary hike on HCL, LTIM and Tata Tech is possible.
JM Financial on 3Q results: Where will the eyes be?
JM Financial says discretionary expenses may still remain low. The picture of the IT budget will be clear when the Trump government comes to power. If furloughs increase, anxiety will increase. Will keep an eye on deal TCV.
JM Financial on 3Q results
JM Financial says that a slowdown in constant currency revenue growth of TCS is possible. Improvement in the company’s margins is possible in the third quarter. Infosys may increase its revenue guidance for FY 2025 to 4-4.5 percent. Wipro’s margins may be under pressure due to BFSI and E&U. The best possible growth for HCL Tech is 5.5 percent. Coforge and Persistent Systems can do well.
JM Financial: Where is growth possible in IT sector?
JM Financial sees further upside in Mphasis, Persistent, Coforge, Wipro and Infosys.
Signs of bottom forming in the market, 24300 level possible in Nifty in next few days – Sushil Kedia
IT sector in focus
If we look at today’s fall in IT stocks, Nifty IT has fallen by 2.2 percent today. At the same time, it has given 21 percent return in 2024. Persistent has fallen 4.5 percent today. At the same time, it has given 71 percent return in 2024. Mphasis has fallen 3 percent today. At the same time, it has given 3 percent return in 2024. OFSS has fallen by 2.8 percent today. At the same time, it has given 198 percent return in 2024. Koforz is down 2.6 percent today. At the same time, it has given 52 percent return in 2024. TCS has fallen 2.5 percent today. At the same time, it has given 7 percent return in 2024. Infosys fell 1.8 percent today. At the same time, it has given 20 percent return in 2024.
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