Investors in Indian stocks are evidently enthused about the prospects of Indian IT companies . Tech stocks have been seen as a safe haven post-covid, and since India doesn’t have pure technology bets, investors have been buying stocks of outsourcing firms. With tech stocks, the drop in revenue has been restricted to low single-digits, giving further weight to the safe haven theory. In end-June, the valuation premium of the two Indian firms stood at 55% and 6%, respectively. To be sure, it’s possible that global investors are under-appreciating gains for outsourcing firms, and that Accenture shares too will eventually rise.

Source: Mint October 18, 2020 16:41 UTC