Last week, a press report noted that equity mutual funds have been logging out of infotech stocks. Fund houses reduced their exposure to the IT sector substantially in 2016-17: from 11.9% to 9.2% over the year. Director of fund research at Morningstar Investment Adviser India, Kaustubh Belapurkar, was quoted in the post saying that while exposure to the technology sector dipped significantly, fund managers didn't sell large positions and neither were there any major additions. Thus, on an overall basis, exposure to IT dropped significantly.
On the other hand, Anand Radhakrishan, CIO - Equities, Franklin Templeton Asset Management (India), was quoted today in The Economic Times as saying that he sees value in IT stocks, being a contrarian.
Morningstar’s equity analyst Andrew Lange shares his take on three infotech stocks. You can read a detailed analysis on the relevant links below.
Tata Consultancy Services
TCS will post industry-leading revenue growth and benefit from a narrow economic moat.
Wipro
Wipro's position in the IT services industry remains secure.
Infosys
CEO Sikka is expected to reinvigorate Infosys' morale and strategic direction.
