IT stocks are experiencing a notable surge, driven by Accenture’s Q4FY20 estimates miss. Among the standout performers, HCL Technologies has witnessed a remarkable 5 percent increase, contributing to an impressive 50 percent rally year-to-date.
Similarly, Infosys saw a 2 percent uptick in the day, adding to its substantial 35 percent gain in 2020. The resilience and upward trajectory of the IT sector have played a pivotal role in the overall market upswing.
Sandip Agarwal from Edelweiss Securities remains optimistic about the future, anticipating a sustained positive trend across the short-term, medium-term, and long-term horizons. He predicts a period of robust growth spanning the next five years, forecasting a dollar revenue growth of 12-13 percent for FY22.
Looking ahead, Agarwal envisions a continuation of this momentum, with mid-teens revenue growth anticipated from FY23 to FY27. Additionally, he anticipates a solid 20 percent EPS growth for large and well-established IT companies during this period. The outlook reflects a positive sentiment surrounding the IT sector’s performance and its potential impact on the broader market.