After a rally in CY18, experts see time-wise correction in IT stocks

Going ahead, even though analysts remain bullish on IT stocks, they caution against the sharp rally seen thus far in CY18 and the valuations at which some of these stocks trade.

Most information technology (IT) companies that have announced their earnings for the June 2018 quarter and have met analysts’ expectations. The combined revenue of the companies that have declared results for the recently concluded quarter stands at Rs 934.87 billion, a rise of 12.2% on a y-o-y basis. The combined net profit at Rs 162 billion has also moved up 11.6%% during this period on a y-o-y basis.

The performance was aided by an overall sentiment improvement in the BFSI (banking, financial services and insurance) vertical in most cases and the rupee’s depreciation against the US dollar.

On their part,