InvestorQ : Why have IT companies like TCS, Infosys and HCL Tech rallied to new highs in the last few weeks?
swati Bakhda made post

Why have IT companies like TCS, Infosys and HCL Tech rallied to new highs in the last few weeks?

Answer
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Sam Eswaran answered.
4 weeks ago


Most IT stocks were up 3% on Tuesday after reports appeared that the US government could be working on a stimulus package of $2.4 trillion. The big IT stocks were sharply higher as they expected this stimulus to translate into a surge in IT spending.

The stimulus package is expected to catalyze a faster recovery of the US economy. Obviously, Indian IT companies are likely to benefit from the same as they generate significant part of revenue from US geography.

In the last few quarters, Indian IT companies have increased focused on digital technologies like cloud, core modernisation and cyber security. This are the big growth areas and could drive growth in the coming quarters.