It is known that the performance of IT companies has been poor in the last three months. But, how poor are we talking about? BSE IT index has given a negative 20 per cent return in the last three months. The index has 61 companies and of them, 58 have given negative returns! The three companies that have given positive returns are Hinduja Global Solutions (13.1 per cent), Cigniti Technologies (6 per cent), and Matrimony.com (4 per cent). Both Cigniti and Matrimony have reported an increase in their FII holdings and Hinduja Global has reported a mere 1 per cent change. Here are the top ten losers from the IT index and the change in their recent FII holdings.
A major reason for such a steep decline in share prices of many companies is the massive FII sell-off that is happening in the IT sector. In one of our previous articles, we discussed how IT major Tech Mahindra is suffering due to FIIs selling their stake in the last five quarters.
BSE IT has been one of the best performing index since March 01, 2020 giving returns of 30 per cent CAGR. From March 01, 2020 to Jan 17, 2022, reaching its all-time high, the IT index gave a 154 per cent return on an absolute basis and 64 per cent on an annualised basis. But since then, from Jan 18, 2022 to July 11, 2022, the index has given a negative 26 per cent return.
Suggested read:
Only two sectors gave positive returns in the last three months
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