IT stocks outrun markets for three consecutive quarters; midcaps shine

The Nifty IT index has outperformed the benchmark Nifty50 for the three consecutive quarters, rallying 23 per cent since June 30, 2017 as against six per cent rise in the Nifty50 index. Even on a calendar year basis, IT stocks have done well at the bourses, with the gauge of IT stocks on the NSE rallying seven per cent in CY18, as compared to 1.4 per cent fall in the Nifty50 index.

Among individual stocks, Infinite Computer Solutions (up 79 per cent) and Mastek (54 per cent) from the mid-cap IT segment have zoomed over 50 per cent. NIIT Technologies, Mindtree, Mphasis, L&T Infotech, Tech Mahindra, Polaris Consultancy Services and Hexaware Technologies were up in the range of 20 per cent to 40 per cent thus far in CY18.

Large-cap IT companies like Tata Consultancy Services (TCS), Infosys and HCL Technologies outperformed the market by gaining in the range of 7 per cent to 9 per cent in CY18. However, Wipro underperformed its peers, with the stock declining 10 per cent during the period.