It’s Right Time to Invest in IT Sector?

 

The last two weeks were not good for Indian Market.  FII sold more than 34,800 crore shares in last two week and DII bought only 11,300 crore shares,due to this selling Nifty and Sensex fall 6.47 % and 6.73% respectively. This fall also reported in NIFTY IT and Other Indexes.  Nifty IT was down by 13.52% in just 9 trading session from 17^thJanuary to 27^thJanuary.

 

 

Let’s talk about Nifty IT Indices

Date	Price	Open	High	Low	Volume	Chg%
Jan 28, 2022	33,851.95	33,608.45	34,473.50	33,608.45	48.31M	1.13%
Jan 27, 2022	33,475.05	34,338.10	34,362.85	33,251.70	49.32M	-3.55%
Jan 25, 2022	34,707.45	34,490.35	35,065.80	33,956.55	41.91M	-0.33%
Jan 24, 2022	34,821.60	35,934.20	35,969.85	34,563.20	36.41M	-3.42%
Jan 21, 2022	36,054.60	36,354.30	36,579.65	35,836.65	34.53M	-1.66%
	(Nifty IT Last 5 Trading Session)

 

As per above chart, major key points are:

·        Nifty IT down by 2203 Point (7.83%) in last 5 trading session.

·        Nifty IT down by 5595 Point (14.18%) from 52 week high.

 

This downfall affected IT Sector Stocks, due to which following stocks also went down. It’s best time to buy these following blue –chip stocks.

Company Name	Last Price	% Chg	52 wk High	52 wk Low	Down From 52 Week High	Down From 52 Week High(%)
Wipro	552.2	1.37	739.8	398	187.60	25.4
Tech Mahindra	1,410.55	-2.43	1,837.75	915.05	427.20	23.2
HCL Tech	1,080.50	0.24	1,377.00	890	296.50	21.5

 

Let’s discuss about these stocks:-

1.     Wipro

CMP:-552

Wipro is one of the leading companies in IT Services & Consulting Sector in India. Recently Wipro become Top Employer of 2022 in North America.Wipro Ltd on January 12^threported a net profit of Rs 2,970 crore in the fiscal third-quarter (Q3 2021-22), which is higher than Rs 2,931 crore reported in the quarter ending on September 30. The revenue in Q3 FY22 came in at Rs 20,432.3 crore, which is higher than Rs 19,667 crore reported in the previous quarter. The numbers also mark a 30 percent year-on-year growth, as Wipro had reported revenue of Rs 15,670 crore in the corresponding period last year.

Key Points:-

·       Wipro down by 52 point (10.57%) in last 5 trading session

·       Wipro down by 187 point (25.4%) from its 52  week high

·       The revenue increase 30% on YOY Basis.

·       Mutual Funds have increased holdings from 1.94% to 2.65% in Dec 2021 qtr.

·       Number of FII/FPI investors increased from 888 to 905 in Dec 2021 qtr.

 

 

2.  Tech Mahindra

      CMP:- 1410

Tech Mahindra is one of the leading companies in IT Services & Consulting Sector in India and Also a Part of Mahindra Group.Techm Ltd on January 29^threported a net profit of 1,310 crore, up 23.03% on QoQ. Revenue at 9,647 crore, up 2.9% QoQ. Flat YoY basis. Recently, Tech Mahindra has been chosen as a strategic partner by a leading Communication Service Provider in UK for implementing Software Defined Network enabled 5G Transport Network.TechmWon a deal with a European engineering company to transform the core infrastructure operations to enhance customer experience and enable faster time-to-market. Tech Mahindra has been selected by an American healthcare company for digital transformation of their entire application stack.TechmEngaged by an Indian aerospace company for ERP transformation.

 

Key Points:-

·       Techm down by 256 Point (16.37%) in last 5 Trading session

·       Techm down by 427 point (23.2%) from 52 week high

·       Revenue at  9,647 crores, up 2.9% QoQ, flat YoY

·       Profit after tax (PAT) at ₹ 1,310 crores, up 23.0% QoQ

 

3.  HCL Technologies

CMP:-1080

HCL is one of the leading companies in IT Services & Consulting Sector in India. January 20^th 2022, HCL Technologies Named Top Employer of 2022 in 17 Countries Globally. HCL has been awarded this status in Australia, Brazil, Canada, France, Germany, Guatemala, Malaysia, Mexico, the Netherlands, New Zealand, the Philippines, Poland, Singapore, South Africa, Sweden, the United Kingdom and the United States. Recognized for the sixteenth time in a row in the United Kingdom, HCL is also ranked first in Poland, Sweden and the Philippines.

Key Points:-

 

·       HCL down by 94 Point (8.27%) in last 5 Trading session

·       HCL down by 296.5 point (21.5%) from 52 week high

·       Revenue at 22,331 Crore, Up 8.1% QoQ and 15.7% YoY

·       Net Profit at 3,442, Up 5.4% QoQ and -13.6% YoY

·       Company Named top Employer 2022 in 17 Countries Globally.

 

Disclaimer:

All the information provided here is only for Educational Purpose. We do not have any personal position in this stock and we are not promoting this company. Please take the Advice of your Financial Consultant before taking any decision.