Stronger rupee\, slower growth likely to hit IT firms\' performance in 2019

Stronger rupee, slower growth likely to hit IT firms' performance in 2019

The bigger worry is the concern around slowing growth in the US and Europe - the biggest markets of IT majors - accounting for more than 75 per cent of the revenue

Shreepad S Aute  |  Mumbai 

IT was the best performing sector in 2018, with the Nifty IT index surging about 24 per cent during the year, outpacing the 3 per cent rise in the Nifty 50.

With the exception of Wipro and HCL Technologies, the other three sector leaders Tata Consultancy Services (TCS), Infosys and Tech Mahindra gained 27-43 per cent returns last year. What had helped the sector last year was a supporting environment in the US, be it tax cuts or fiscal spending, coupled with a weak rupee. “The IT sector’s strong performance in 2018 was predicated on robust earnings growth aided ...

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First Published: Thu, January 10 2019. 01:25 IST