Homeinformation technology news

Macquarie turns positive on IT sector as demand fear seen waning

information technology | IST

Macquarie turns positive on IT sector as demand fear seen waning

Mini

Macquarie has turned bullish on IT space. Macquarie says that worries over demand have been overdone. The S&P 500 revenue and technology spending correlation with IT services is not going to hold this time and that spending is expected to be far more resilient.

Macquarie has turned bullish on IT space and named HCL Tech, TCS, Infosys as its top picks. This as experts just a week back voiced that the sector was in a deep bear zone due to fears of slowing global growth.
The Nifty IT has fallen close to 25% since the start of the year and multiple downgrades
Now, the Macquarie report says that the worries over demand are overdone and that the S&P 500 revenue and technology spending correlation with IT services is not going to hold as IT spending is expected to be far more resilient.
Macquarie's pecking order starts with HCL Tech, TCS, Infosys, Wipro, and then Tech Mahindra. It has an ‘outperform’ across the board for the large-cap IT names.
Along with this the margin outlook has improved with the INR depreciation and company managements have said post their fourth-quarter results that attrition will likely moderate.
Macquarie as the table shows above has upgraded Wipro to an ‘outperform’ with a target price of Rs 955 while Tata Consultancy Services (TCS) and HCL Technologies are their top picks.
It is noteworthy that Nomura, had recently downgraded TCS, Wipro, HCL Tech, L&T Infotech and Persistent and kept only only two stocks in the 'buy' rating category: Infosys and Tech Mahindra.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!