Shares of major information technology (IT) companies including Wipro and HCL Technologies were among the top Nifty movers on Thursday.

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The sectoral gauge Nifty IT jumped more than 2 percent in intraday trade led by gains in Coforge, Wipro, and L&T Technology Services. Except for Tata Consultancy Services, all other nine scrips in the tech pack were in the green territory at the time of writing.

Tech stocks rose even as benchmarks Sensex and Nifty50 gave up initial gains in a choppy session. Most experts continue to remain bullish on the IT sector in the medium term as other sectors witness relatively sharper correction amid a volatile market situation.

Wipro shares jumped 3.8 percent to an intraday high of Rs 575.95. At the time of writing, the stock was at Rs 572.20, up 3 percent from its previous close on NSE.

Coforge was trading 4.4 percent higher at Rs 4,646.25 and was the top contributor to Nifty IT’s rally.

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L&T Technology Services stock touched an intraday high of Rs 4,697.95, up 3.5 percent from its previous close. The shares were trading 2.9 percent higher at Rs 4,674.30 at 2:05 pm. Tech Mahindra shares too rallied 3.5 percent during the day and were trading 2.22 percent higher at Rs 1,425.35 on NSE at the time of writing.

Infosys shares too were up almost 3 percent in intraday trade and were up half a percent at 1,712.50 at the time of writing.

Earlier on Wednesday, Vinit Sambre, head of equities at DSP Investment Managers, said the IT sector looks good but more correction in midcap IT will make it attractive.

Meanwhile, Nilesh Shah, MD & CEO, Envision, said, “In the very short to medium-term, the stock prices of IT sector depend a lot in terms of how the Nasdaq moves and that’s, of course, more directional. So if there would be another 5-10 percent correction in some of the IT names, I again think they would come back on the buy list.”

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Bhavin Shah, Founder & Portfolio Manager, Sameeksha Capital, however, cautioned investors citing extrapolated statements by firms about strong growth and talent crunch leading to supply-side issues.

“There are two-three issues there. One is that a lot of demand that IT companies have been seeing -- and some of them are even extrapolated to talk about five years of strong growth -- and so on when companies start making those statements, I do get worried. But the main point is, if the markets are in a corrective mode, some of the frothy demand... The demand starts to taper off a little bit but the bigger issue is clearly on the supply side,” he told CNBC-TV18.

According to him, there is a clear talent crunch in the sector which is putting a lot of pressure on wages. A little depreciation in the rupee may give some breather, he said, adding that his firm will relook at the sector but at present the correction isn’t enough to take a big dip into it.

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First Published:Mar 3, 2022 3:26 PM IST