These days IT companies have a different influence in the stock market. The shares of Infosys, the country’s second largest IT company, have done wonders. On July 29, it witnessed tremendous growth for the third consecutive day. This share jumped 4.32 percent and closed at Rs 1,153.50. Within just three days this stock has gone up by about 11 percent. In such a situation, those who have its shares or are thinking of making new investments, have only one question in their minds, what to do now? Buy, sell or hold now?
Foreign investors are losing confidence in AI companies
Nowadays a big change is being seen in the foreign market. Big investors around the world are now pulling out their money from Artificial Intelligence (AI) and chip making companies. Recently, the biggest reason for the big fall in South Korea’s stock market was these chip companies. Even in America, the condition of the shares of these big companies seems to be sluggish.
In fact, shares of AI-related companies had become very expensive. Therefore, sensible investors are now withdrawing their money and investing it in those IT stocks which are still available at cheap prices. This is the biggest reason behind this fast growth of IT index in the Indian stock market.
How did the fortunes of Indian companies shine?
Ponmudi R, Founder and CEO of ‘Enrich Money’. According to, this is a great opportunity for Indian IT companies. Foreign investors are withdrawing money from expensive stocks and putting it in safe place i.e. Indian IT stocks. The best thing is that Indian companies are going to directly benefit from AI technology without any huge expenditure. In fact, the whole world is looking at Indian companies not as developers of AI infrastructure, but as implementation partners of that technology.
Mayank Jain, analyst at ‘Shares.Market’ (PhonePe) also believes the same. He says that Indian companies did not already have any AI model of their own. Earlier this seemed to be a drawback, but now this thing is working in their advantage. Because of this, Indian companies have been saved from costly risks and losses.
After a significant decline, is it worth a bet now?
If we look at the past record of Infosys, this second largest company of the country after Tata (TCS) has given a tough test to the investors. Infosys shares have fallen by more than 29 percent this year. At the same time, there was a decline of 24 percent in the last one year. But, in the last one month, the situation has completely changed. There has been a good comeback in IT stocks and the Nifty IT index has risen by more than 14 percent.
Market experts say that after falling by 35 to 40 percent, IT shares have now made their lowest level (bottom). The boom that is being seen right now is because shares are getting cheap and big institutions are buying heavily. However, experts also advise that the path ahead looks good, but the market may take a pause and take a breath before taking the next big leap. In the short term, the movement of these stocks will also depend on how much the economy of America and Western countries improves in the coming days.
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