INSUBCONTINENT EXCLUSIVE:
Mumbai: The recent bull run in technology shares may have ended abruptly as a reversal in the fall in the rupee against the US dollar has
dimmed the prospects of the sector
decline in oil prices and rupee to invest in financials
41 per cent in the first-nine months of calendar year 2018, has fallen nearly 17 per cent since October 1
Tata Consultancy Services has fallen 19.5 per cent after gaining over 64 per cent in the January-September period
Similarly, shares of HCL Tech, Mindtree, Wipro and Tech Mahindra have fallen 7-23 per cent since October 1.
Overall, the recent weeks have
not been good for companies in the technology space, with FAANG stocks (Facebook, Amazon, Apple, Netflix, and Google parent Alphabet) taking
a beating in the US, following disappointing earnings and mixed forecasts
While the fall in US tech stocks and software exporters is unrelated, analysts believe that further appreciation will sour sentiment further
for the domestic software exporters.
Pankaj Pandey, head of research at retail broking firm ICICIdirect, said he views the recent correction
best performer in the last 12 months
run-up to the general elections, which is scheduled in the first half of 2019
The months ahead may see investors flocking to the defensive space again, which bodes well for the information technology stocks.
