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While the outcome of efforts to avoid the fiscal cliff in the US not sending any clear signal and the rupee depreciation may not be playing out to the benefit of the IT sector as much as in the past, frontline IT stocks were under pressure today.
Of the four IT frontline stocks — TCS, Infosys, Wipro and HCL Technologies, it was only HCL Tech that was in the green but barely.
TCS was the biggest loser in terms of value, down by Rs 37.25 at Rs 1,205. Infosys lost Rs 16.80 to trade at Rs 2,262 and Wipro shed Rs 6.55 at Rs 369.40.
Only HCL Tech , among the four IT majors, managed to be in the green, up by Rs 3.10 at Rs 634.
The performance of these frontline stocks showed that while TCS and HCL tech have been able to ride the market rally, Infosys has missed it out while Wipro has not been able to benefit much from it.
HCL Tech, after touching its 52-week high of Rs 660.95 on Nov 30, has eased a bit in the past few days. But its value has sharply gone up from the 52-week low of Rs 380.40 that it touched on December 22 last year.
TCS is another stock to have gained from the market rally, up by about 40 per cent from its 52-week low of Rs 1,045.30 that it had touched on January 18. But the stock had shed significant value after hitting the yearly high of Rs 1,439.80 on September 14.
Infosys, however, has been unable to ride the market momentum this year.
The stock, which had touched Rs 2,994, its yearly high, on February 22 this year, has been consistently under pressure, slipping to its 52-week low of Rs 2,060.55 on October 5. Though the stock had recovered from its low, it still continues to be under pressure.
Wipro , which touched a low of Rs 295 in November last year, had touched a high of Rs 453 on February 17 this year. But since then it has been unable to maintain a growth trajectory.
Analysts tracking the sector felt that the US clients were cautious in finalising their IT budget for the next year.
With the Indian currency depreciation story almost having played out, the IT sector may not witness any significant benefit from this in the coming quarters.
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