Winning Bizness Desk
Mumbai. Nifty IT index has performed poorly in comparison to Nifty50 in the last one month. Revenue growth of IT companies has been sluggish in the fourth quarter. At the same time, the margins of these companies have come down. In fact, after the Corona epidemic crisis, Indian IT companies are facing pressure on Dalal Street due to the sharp increase in interest rates and the possibility of slowing down of the global economy due to this.
Interest rates taking a toll
In the midst of inflation, the increase in interest rates is taking a toll on the markets around the world. Even as the rupee hit an all-time low against the dollar, the fall in Nifty IT stocks hasn't stopped. Notably, the weakness in the rupee against the dollar is considered good for the IT industry. The reason for this is that due to the earnings of IT companies abroad in dollars, its value in rupees increases.
The shine of the IT sector tarnished !
Due to the possibility of pressure on the margins of IT companies, despite good guidance from their management, the shine of the IT sector seems to be tarnished. Despite the strong demand during the Corona epidemic, IT companies are going through the pressure of increasing expenditure on the salaries of the employees. Let us tell you that at this time tremendous talent hunt is being seen in IT companies. Because of this, companies are finding it difficult to retain their employees. Its impact is visible on margins.
What is the future
Market experts opine about the future condition and direction of Indian IT companies, to be cautious on the IT sector as further decline is possible in this sector. Experts have advised investors to wait for investment in the IT sector and investors should keep an eye on the interest rate hike by the Reserve Bank of India and the Federal Reserve.
