Earlier, this year the trailing 12-month price-to-earnings (P/E) ratio for the Nifty IT index surpassed 30x for the first time.
Currently, the index trades at a P/E multiple of 28x versus historical average of 20x. Most analysts, however, are positive on the IT sector which has largely moved in lockstep with the benchmark Nifty so far this year.
“The IT sector will be unaffected by the domestic challenges and might even benefit from acceleration in digitization initiatives undertaken by the Indian companies,”says a note by Axis Securities. Some say the UW stance by FPIs could provide a tailwind for the stocks in the sector.
.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
First Published: Mon, May 10 2021. 23:50 IST
read the full story about Foreign portfolio investors turn tech-lite but analysts are positive
#theheadlines #breakingnews #headlinenews #newstoday #latestnews #aajtak #ndtv #timesofindia #indiannews