INSUBCONTINENT EXCLUSIVE:
Tech stocks, which were out of favour on Dalal Street till the other day, have since rebounded smartly to log up to 40 per cent gains
over the past one year.
In the process, they have outperformed all other equity fund categories as well as equity benchmarks Sensex and
An out and out technology-oriented fund, Tata Digital India Fund, has risen as much as 52 per cent in last one year compared with 14 per
a mere 5 per cent in engineering and 2.94 per cent in services.
Tata Consultancy Services (TCS) alone accounts for 16.31 per cent of asset
Tech Mahindra (9.98 per cent), Infosys (9.43 per cent), NIIT Technologies (9.02 per cent) and Tata Elxsi (7.78 per cent) are top holdings in
the pecking order.
Shares of TCS, Tech Mahindra, Infosys, NIIT Technologies and Tata Elxsi have advanced 58 per cent, 69 per cent, 41 per
retain flavour for some more time, at least in terms of price correction
Advisory Group, MOFSL, told ETNow in a chat.
This quarter also, IT stocks should hold on
When there is uncertainty in the broader market and the rupee-dollar volatility is at its peak, IT stocks always get into the front seat,
Shah said.
The rupee hit a lifetime low of 69.10 against the dollar last month
Opportunities Fund (up 41 per cent), have also offered robust returns to investors in last one year.
ICICI Prudential Technology Fund has
highest weightage to Infosys, LT Infotech, Tech Mahindra, HCL Technologies and Oracle Financial Services Software (OFSS), while SBI
Technologies Opportunities Fund has 30.36 per cent of its assets in Infosys alone.
Shares of OFSS rose 13 per cent in last one year but have
been almost flat during the first half of 2018
TCS, Cyient, Tech Mahindra and Newgen Software are other top holdings of this fund.
Among others, Aditya Birla Sun Life Digital India Fund
and Franklin India Technology Fund have gained 39 per cent and 32 per cent since June last year
Portfolio-wise, Aditya Birla Sun Life Digital India Fund has 72.82 per cent weightage to technology, 15.38 per cent to services and 10.16
per cent to communication.
The fund has parked most of its fund in Infosys, Tech Mahindra, HCL Technologies, Sun TV Network and KPIT
Technologies.
Franklin India Technology Funds also highest weightage to Infosys (23.91 per cent), followed by TCS (9.89 per cent), HCL
Technologies (8.21 per cent) and Bharti Airtel (5.77 per cent).
Six stocks from the sector have already doubled investor wealth in last one
year with Nelco and Sasken Technologies rallying 167 per cent and 120 per cent, respectively
KPIT Technologies, Infinite Computer, LT Infotech and Firstsource Solutions have advanced over 100 per cent between June 2017 and this past
At this point of time, given the concerns over the broader market, this sector seems to be the best defensive space to be in
That is where most of the money has moved in during the past couple of months
