One observation on IT stocks in my portfolio:
To clarify few backgrounds…I buy stocks in small quantities, just like SIP, but not in any fixed order. Sometimes 2-3 times in a month…sometimes once in 2-3months… so holding period for some units can be more than 1 year or 2 years while for some its just few months.
Observation is , TCS, Infosys, LTI and HCL , all of them are down … negative 15% roughly… all of them are down at the same time and also to almost same extent , over last 2 years…What I infered from it is, all IT services stocks behave in the same manner, and go up and down by similar extent over the same period of time. So although they are all good companies, they are doing more or less same work, so behaving in same manner to overall economy changes and external environment. So in nutshell, they are not providing any diversification in the true sense. TataElxsi behaviour i cant figure out as , I have just started tracking position.
One slight difference is among all 4 companies, TCS is down by 11% instead of 15% in other cases.
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