IT Companies A Good Bet As Banks Increase Spends On Automation, Axis Capital Says
Growth for Indian IT Companies Likely To Continue Aided By Stable Rupee And Increased BFSI Spending By Global Majors
India’s information technology companies are expected to continue their good run this year as the global banking and financial services industry increases spending on automation and digitisation.
“We see a double-digit earnings growth for the leaders, and if it comes through, they (their stocks) will see a growth of 11-15 percent depending upon which company you are looking at,” Axis Capital Managing Director S Subramanian told BloombergQuint in an interview. A stable rupee can aid their performance, he said.
The Nifty IT has given a return of 19.6 percent over the last one year. In comparison, the benchmark S&P BSE Sensex and the Nifty 50 returned nearly 15 percent gains during the period.
Subramanian also sees initial public offerings as good investment opportunities. “The Bandhan Bank’s offer has seen good response from anchor investors and we think it is going to be a good issue,” Subramanian said. “Overall, the IPO pipeline is good as long as companies are able to price their issues reasonably. I think investors are looking forward to participate in Indian companies.”
India’s IPOs have continued the momentum after a record year in 2017. Some of the companies that went public this year to raise funds include HG Infra, Aster DM Healthcare, Galaxy Surfactants, Amber Enterprises ad Newgen Software.