BENGALURU: Despite a pandemic that hit its economy hard, India has emerged as the leader in the technology sector across Asia with a robust 37% growth in technology stock prices (in dollar terms) by far in 2021 compared to China which has seen a de-growth by 11.1%, the latest analysis by global investment bank, Credit Suisse stated.
The research, which analysed the technology sector across various countries excluding Japan, noted that Taiwan also saw a 19.6% growth in technology sector stocks whereas Korea’s tech stocks prices fell by as much as 9% in 2021.
India’s mid-cap IT companies like Mindtree, Happiest Minds, L&T Infotech, Persistent Communications have seen a strong growth during the pandemic even as the big four IT service companies -- Tata Consultancy Services, Infosys, Wipro, HCL Tech -- share prices have rallied with a double-digit growth in stock price, leading the bull run in stock markets even as Covid derail the economy.
Manish Nigam, Head of Global Sector Research and Head of Asia Pacific (APAC) Technology Research at Credit Suisse said, that while there have been rising concerns in recent months that the semiconductor cycle might be peaking,
Credit Suisse believes that the cycle will not peak until the second half of 2022.
He added, “Although factors like the ongoing geopolitical trade sentiment and the resurgence of new variants of the Covid virus may weigh on the sector’s results, the longer- term technology story remains robust."