BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
In Q2 FY22, the Nifty IT index outperformed the Nifty by 800 basis points and the Nifty Bank by 1250 bps.
This was due to the continued strong demand conditions, low interest scenario globally, worries around the largest competing sector, financials, on credit growth and asset quality.
Nifty IT in Q2 FY22 was driven by HCL Technologies Ltd. and Tech Mahindra Ltd. in tier-1 pack and by strong returns within the tier-II set (Mindtree Ltd. and L&T Technology Services Ltd. up 62% each, Larsen and Toubro Infotech Ltd. up 42%).
Outperformance of HCL Tech and Tech Mahindra was likely because investors were chasing value, with peers trading at multiples never seen since 2007.
Also, investors likely sense that FY23 could see revenue acceleration for both these companies - something that cannot be said for other tier-I peers.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
