Technology Stocks Stand Out Amid Slew Of Earnings Downgrades
Corporate India continues to see downward revision in earnings estimates but technology stocks are an exception.
Brokerages have lowered their earnings estimates for nearly half of the companies on the benchmark CNX Nifty 50 index for the current financial year. Earnings per share estimate for the index was revised lower by 2.8 percent to Rs 493.70 since Oct. 12, when firms started reporting July-September quarter earnings.
The financial and healthcare sectors saw the biggest downgrades while industrials and information technology stocks were upgraded.
In fact, IT has been the standout performer. All five IT stocks in the Nifty 50 have seen a consensus earnings upgrade post second quarter results. Tech Mahindra has seen the biggest upgrade of nearly 6 percent uptick for current year.