Buying In IT Pack Seen; Mindtree, 4 More IT Stocks Hit New 52-Week High

Even as indices have recovered some of the losses in today's trade, with Nifty now close to 16,600 mark. But nevertheless, there is seen a drag on the broader markets yet again and Nifty Bank is largely trading flat with a negative bias, trading with a loss of 0.1% at the time of writing this report at 1:07 pm.

Buying In IT Pack Seen; Nifty IT Gains Over 1%; Mindtree, HCL, Mphasis, TCS and Tech Mahindra Hit Fresh 52-Week High

Meanwhile, while among the sectoral indices, there is seen a sea of red, only defensive sectors, including Pharma and IT and the financial services indices are trading in the green. Among all, Nifty IT is the most robust, with gains of close to 1.7%.

Of all the 10 constituents, 9 of them are trading in the green, while the only stock in the red is the OFSS. While the stocks including Mindtree with gains of over 4% intra-day have logged fresh 52-week high and others that have hit fresh high include HCL, Mphasis, TCS and Tech Mahindra are other stocks that have hit fresh high.

While the current momentum in stocks may see some correction as indicated by technical indicators and charts, experts are recommending buy on dips and that too particularly large caps which may see a traction going ahead, so investors considering the sharp pace of digitalization, pace of hiring in IT sector and hence the growth prospects of the industry, may even bet on large cap IT names for future gains.

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