Growth, margin uncertainty likely to impair recovery in IT stocks

Topics IT stocks | Sensex | stock markets

The stocks of top IT companies, which were also hit following weak investor sentiment post Covid-19 outbreak, have bounced back sharply from their lows in March. Tata Consultancy Services, Infosys, HCL Technologies and Wipro have seen their share price gain between 23-33 per cent since March 23. Tech Mahindra (TechM) is up by just 10 per cent due to a relatively poor performance in March quarter (Q4). With this, most of these top IT stocks are now trading above or at par with their respective historical 1-year forward valuation mean (see graph). While the recovery in these IT stocks is p.....

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