IT firms shine in an otherwise dismal market: Is that the place to be

Mumbai: While most sectoral indices on BSE have logged losses for the year so far, software services companies seem to be providing some solace to jittery investors, because of optimism on the back of strong demand outlook.

On a year to date basis, while Sensex has shed 0.48 per cent, BSE IT index has given 6.82 per cent return for the same period. BSE IT and BSE Teck indices are the only ones to log positive gains so far in 2019.

“In a difficult market, IT is a defensive play,” said analyst Ambareesh Baliga. “It’s been a consistent performer. The demand scenario looks promising. At the same time, the biggies in the sector are sitting on cash, and opting for share buybacks,” Baliga said.