IT sector index weight in Sensex hits five-year low

Three software companies in Sensex used to account for 17.8% in March 2016

Krishna Kant  |  Mumbai 

The continuing slippage at information technology (IT) companies is making the sector less important in the scheme of things at Dalal Street. The sector has slipped to third position, behind fast moving consumer goods (FMCG) companies in sectoral weightage on the BSE exchange's benchmark Sensex, from second most influential sector till a year before. Tata Consultancy Services (TCS), Infosys and Wipro, part of the 30-share index, together now have 12.7 per cent weight in the Sensex, sharply down from 17.8 per cent at the end of the March 2016 quarter (see chart). The ...

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IT sector index weight in Sensex hits five-year low

Three software companies in Sensex used to account for 17.8% in March 2016

The continuing slippage at information technology (IT) companies is making the sector less important in the scheme of things at Dalal Street. The sector has slipped to third position, behind fast moving consumer goods (FMCG) companies in sectoral weightage on the BSE exchange's benchmark Sensex, from second most influential sector till a year before. Tata Consultancy Services (TCS), Infosys and Wipro, part of the 30-share index, together now have 12.7 per cent weight in the Sensex, sharply down from 17.8 per cent at the end of the March 2016 quarter (see chart).The sector weight will fall further if Thursday's stock price is taken into account. IT companies, led by Infosys (down four per cent), were among the biggest losers on the day. Banks and financials continue to lead the charts, with 27.1 per cent weightage in the index, up from 24.5 per cent at the end of the March 2016 quarter.Analysts attribute this to IT companies' poor performance on the bourses and their lower valuation ... The continuing slippage at information technology (IT) companies is making the sector less important in the scheme of things at Dalal Street. The sector has slipped to third position, behind fast moving consumer goods (FMCG) companies in sectoral weightage on the BSE exchange's benchmark Sensex, from second most influential sector till a year before. Tata Consultancy Services (TCS), Infosys and Wipro, part of the 30-share index, together now have 12.7 per cent weight in the Sensex, sharply down from 17.8 per cent at the end of the March 2016 quarter (see chart). The ... image
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