Equity fund managers deployment in software stocks stood at Rs 31,834 crore in September last year. Industry experts said that fund managers have been raising their allocation to software stocks since June due to declining rupee against the US dollar.
KRChoksey has come out with its research report on IT sector. "Considering revenue growth rate built in stock price during phase II (i.e. FY18E to FY27E) and margin expectations; we prefer HCL Technologies followed by Wipro", says the research firm.
Infosys, which will announce its second quarter (July-September) earnings on October 10, fell as much as 4.88 percent intraday while Tech Mahindra tanked 6.66 percent and Mindtree lost 4 percent intraday today.
The BSE IT Index is headed towards a 2-1/2 month low, after bellwether Infosys gave a FY13 guidance that was below market expectations.