IT sector stocks surge in 2018
The IT sector has been on a recovery mode since the past few months. In October 2017, the BSE Information Technology index stood at 10,005.49. It touched new 52-week high of 13,126.39 in January 2018. Currently it is trading at 12,439.91 levels. Thus, in past 4 months, the index has surged by ~25 per cent.
Since inception of 2018, some of the big IT players’ stocks have performed well and the prices have jumped by more than 15 per cent. Companies like Mindtree and NIIT Technologies have given returns of more than 30 per cent from January to March 2018. Some of these companies are trading close to their 52-week highs.
Digital space is the upcoming segment where all the small and big IT companies have many opportunities to explore. In the next 2 to 3 years, this segment would drive the revenue of major companies. Cloud migration and customization are the new drivers along with technology up-gradation which will help the IT companies grow. The recent correction mode has not affected the sector much and one can expect strong revival in the IT sector.