This IT stock may replace L&T Tech in Nifty IT index
Premium- IT stock Persistent Systems can dislodge L&T Tech Services (LTTS) in the Nifty IT index, as per Edelweiss
In the upcoming Nifty September Review, according to brokerage Edelweiss Alternative & Quantitative Research's preliminary analysis for Nifty indices, it believes that IT stock Persistent Systems can dislodge L&T Tech Services (LTTS) in the Nifty IT index.
Persistent Systems inclusion will lead to positive flows of about $20 million whereas, exclusion of L&T Tech may see estimated outflows of $17 million, said the brokerage. The only risk factor, as per Edelweiss, is of any sharp contra price move in either of the probable names can lead to a change in conviction.
Persistent Systems shares have risen over 49% in a year's period whereas, the IT stock is down more than 23% in 2022 (YTD) so far. Persistent Systems provides digital engineering and data and artificial intelligence products to the software, banking, financial services and healthcare sectors.
Meanwhile, in a year, LTTS shares are up about 30%, however, have fallen 39% since the beginning of this year. L&T Tech, part of conglomerate Larsen & Toubro group, is involved in engineering and R&D (ER&D) services.
Edelweiss Alternative & Quantitative Research has carried out a pre-emptive analysis of the Semi-Annual Index (SAIR) September 2022 Rejig for Nifty indices. The index provider will officially announce the list in the second half of August 2022. The cut-off date is July 29 whereas the announcement is expected to be in the second half of August and rebal date is September 30, 2022.
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Meanwhile, according to Edelweiss' preliminary analysis, Adani Enterprises holds a high chance to dislodge Shree Cements in the Nifty 50 index in the upcoming review. Shree Cements has a higher probability of being excluded while the next name on radar would be Hero Motors.