In the year gone by, the BSE IT index gained 25%, outpacing the benchmark Sensex’s 5.9% gain. This makes 2018 the best year for the BSE IT index since 2013.
Boosted by a weak rupee, technology stocks outpaced benchmark indices in 2018. As Indian IT (information technology) companies earn mostly in dollars, a weak rupee meant higher revenue. The rupee weakened 8.46% against the dollar in 2018, touching a record low of 74.48 to the dollar in October. Among IT stocks, Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, Tech Mahindra Ltd and Wipro Ltd were up 5-43% in 2018.
However, analysts believe the rate of growth for IT companies is unlikely to quicken in 2019 due to slow economic growth across the US and Europe, Brexit-related uncertainty in the UK, soft PMI/confidence indicators in Germany and the UK, and weak client financials.