Recently almost all the major IT companies have announced their Q3 of Financial Year 2022. But after their announcement, some of the tech companies fall because the result was not that great as expected. And because of that reason in 2 trading sessions some of IT stocks, as well as the Sensex, fell. To be honest, I do not track the movement of the market very closely, but still once in a while, I do check what is going on in the Market, yesterday was such a day.
One of the reasons was the Q3 result, and the other thing which is bringing Tech stock down is because U.S. policy rate hike. And the tech stocks are very close to the US and European market and because of that, they are falling. Now, there are short term hiccups that usually comes into the market otherwise the market will become boring. The ups and downs of the market usually bring excitement to the trader's mind.
The revenue of the IT companies mainly TCS, Wipro and Infosys is getting better and the Wipro among these three has reported higher YoY growth. When I check the Wipro stock has fallen around 6.5% in the last one month but it has gained around 245% in the last 5 years and similarly I would expect that it will continue its stellar performance in the coming years too.
1 Month
5 Years
PC: Groww.in
Now, this is a great correction at least for the Wipro stock and I am able to pick up some last day. Though it did fall today as well, still I am keeping that for another 1 to 2 years before seeing what to do. The Wipro stock has almost more than 58% revenue comes from US Market and thus with the rising yield the Wipro stock is feeling the burn and thus seems like the profit is gonna shrink in coming days and because of that, the stocks price is failing.
But at the same time when I check the TCS and Infosys stock of the last one month, TCS has rosed around 10% whereas Infosys has risen around 5% so it is clear that the Wipro share price is actually proportionate to whatever is happening in the US market. The US market tech shares have also been going down for some time and thus we can see the effect on that in some of the IT companies like that of Wipro.
Though Wipro has fallen, still I have invested some money in that because I feel that till 2025 the tech markets will be booming with all the new technologies coming into the market. I am betting for all the three TCS, Infosys and Wipro but since the previous ones have already risen so much so I am more inclined towards buying the Wipro stock. I have bought some stock yesterday and will buy more once it falls again 5% and thus keep averaging it. I think we will get a time where the tech companies will start integrating with the Blockchain technologies at the full pace and thus we will see the true potential of the tech companies at that time.
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