“IT offers relative earnings comfort coupled with solid balance sheet, cash flow, return on equity and payout metrics in such current volatile and disruptive times,” Duggad said.
July’s rise in earnings estimates for the tech-industry gauge has come even as forecasts for the benchmark S&P BSE Sensex Index have been little changed.
Blowout earnings spur biggest upgrades for Indian tech since 2013
New Delhi: With India’s biggest technology companies joining their global peers in topping earnings forecasts, analysts are turning extremely bullish on the sector’s outlook.
Twelve-month forward earnings estimates for the 50-member S&P BSE Information Technology Index have climbed 4.6% in July, the most since October 2013, according to calculations by Bloomberg. That’s after first-quarter net income at four of the nation’s five largest IT firms beat even the most optimistic analyst estimate.
India’s $181 billion tech industry is benefiting from rising demand for digital services as the Coronavirus pandemic hastens the global shift toward automation, with analysts citing strong deal pipelines, upbeat management guidance and cost-cutting measures as reasons to be bullish. Stocks in the sector, particularly Infosys Ltd. and Wipro Ltd., have also witnessed a raft of rating upgrades this month.
