The Nifty IT index was ruling nearly a percent higher today(13th Sept.2021), bucking the overall weak trend in the markets. shares of Mindtree were up 3 percent while Mphasis, Coforge, Wipro, and TCS (Tata Consultancy Services) gained between 0.7 percent and 2.2 percent.
According to some analysts, the sector will continue to see re-rating in the near to medium term. "We believe current valuations will sustain driven by liquidity + TINA (there is no alternative) + FOMO (fear of missing out) factors. Also, with pricing power returning, the IT-services sector is closing in on FMCG fundamentals. Lastly, mid-caps will continue to trade at a premium to large-caps in the near to medium term, driven by a never-before outperformance in revenue growth relative to large-caps for at least the next two years," they said.
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