FIIs Reduce Stakes in Top IT Stocks as Mutual Funds Increase Holdings
Foreign institutional investors (FIIs) have reduced their stakes in eight of the top 10 Indian IT stocks during the September quarter, while mutual funds have increased holdings in nine out of ten. FIIs notably decreased stakes in Infosys (1.84%), TCS (1.15%), and Coforge (2.79%). Conversely, mutual funds increased positions in Infosys (1.87%) and TCS (0.46%). The IT sector faces challenges with major players experiencing stock price drops of at least 20% from peak values. Concerns about artificial intelligence's impact on the industry's future growth persist, with Jefferies warning of potential 20% revenue deflation over five years. Goldman Sachs projects modest growth, with services revenue growth of 1.7% quarter-on-quarter and 1.1% year-on-year for the full year.
Foreign institutional investors (FIIs) have reduced their stakes in eight of the top 10 Indian IT stocks during the September quarter, while mutual funds have increased holdings in nine out of ten. FIIs notably decreased stakes in Infosys (1.84%), TCS (1.15%), and Coforge (2.79%). Conversely, mutual funds increased positions in Infosys (1.87%) and TCS (0.46%). The IT sector faces challenges with major players experiencing stock price drops of at least 20% from peak values. Concerns about artificial intelligence's impact on the industry's future growth persist, with Jefferies warning of potential 20% revenue deflation over five years. Goldman Sachs projects modest growth, with services revenue growth of 1.7% quarter-on-quarter and 1.1% year-on-year for the full year.
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