It's been a bad month for IT stocks in the month of August, as the IT index has shown a marginal decline, even as the Sensex and the Nifty have hit a new 16-month high. Here are quality IT stocks that have hit the 52-week lows in August, including some blue chip names.
Infosys has declined to a new 52-week low of Rs 1009 on Aug 22. The systematic decline was largely following quarterly numbers and then reports of a cancellation of contract by the Royal Bank of Scotland.
There are reports of a conference call with the management of Infosys, following which analysts are more optimistic on the stock.
Infosys last ended at Rs 1028 on the NSE.
Shares in Wipro dropped to a new 52-week low of Rs 477 on August 29. The decline has been since the beginning of the month and following quarterly numbers that lagged estimates. Analysts continue to be worried on energy sector demand for the company, given that crude prices have dropped.
The shares of Wipro last closed at Rs 489.
Some of the top clients for Wipro are from the energy sector.
NIIT Technologies hit a 52-week low of Rs 386 on Aug 20.
The stock has declined from a 52-week high of as much as Rs 680 in Nov. So, the share price erosion in the stock has been pretty steep since November 2016.
Sentiments for IT stocks remains poor given growth concerns. The shares of NIIT Tech last closed at Rs 395 on the BSE.
Hexaware Technologies hit a 52-week low Rs 197 on Aug 27. If the largecap and marquee names in the sector are dropping to 52-week lows, smaller companies in the sector are likely to follow.
Hexaware shares last closed at Rs 262 on the NSE.
Shares in Tata Elxi dropped to a 52-week low of Rs 1538 on Aug 30. This may not be the same IT companies like the ones listed above, but is a design company that blends technology, creativity and engineering to provide solutions.
Nonetheless, the effect of a drop in other IT stocks seems to have had a rub-off effect.
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