With the changing growth scenario of our country and situations like Rupee appreciation, Mutual fund houses’ managers are asked to take the IT sector, very seriously.
Mutual fund investor who considered IT sector, the least important one was further seen taking the Top IT stocks on a lower note. According to the reports collected by the money managers last month, it was found that the investment of over 1,550 crores was made in liquidated shares in IT sector. This situation worsened further when the IT giant, Infosys showed a very low growth rate in the first quarter of the year. The company even disappointed its shareholders by presenting a very dejected revenue approach of the company.
Most of the fund managers have expressed downfall of IT sector due to following reasons:
- The government has now imposed hard to clear US visa policies
- Rupee appreciation
- The lower flow of orders, and much more.
Some facts about Mutual Funds pruned exposure to Tech Stocks:
- With this slow growth rate, Wipro managed to stand on the top of the list of sold stocks. Tech Mahindra and Tata Consultancy services following Wipro.
- ICICI Prudential Mutual Fund, one of the largest Mutual fund houses of India shocked India when it pruned exposure to the IT giant Infosys and sold Infosys shares for Rs.580 crore.
- HDFC Mutual Fund pruned exposure to HCL Technology and sold its shares for Rs 200 crore.
- Franklin Templeton Mutual Fund cut down resources allocation to Tata Consultancy Services and liquefied its shares worth 113 crores.
- On the other hand, Reliance Nippon Mutual Fund brought HCL Technology shares of value Rs 167 crore in the month of March this year.
According to the Equality head of Mirae Asset Mutual Fund, they see this downfall in IT sector from past two years. The overall growth pattern of this IT sector is falling day and day. The current situation of Rupee is not helping this sector to improve the growth pattern as well.
According to his observations, IT sector has reached a level where more downfalls are still waiting to come. There are other sectors than IT sector that may benefit from these levels of our growth scale.
For this year, it has been observed that IT sector is drowning by 10%
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