The Information Technology (IT) sector is one of the most upcoming sectors of the Indian economy. Not only does this sector contribute to the GDP of the country, but it also drives revenue earned from exports. This year presents some of the top-performing IT sector stocks for stock market enthusiasts. IT companies offer stocks across various categories spanning from cyclical stocks to large-cap stocks. This enables investors to satisfy their respective risk appetites and serve their investment purposes accordingly.
Read on to learn more about trending stocks for 2024 in India, especially the IT sector stocks, and enhance your portfolio.
What are IT stocks in India?
Information technology or IT sector stocks stand for companies that sell cloud-based products and manufacture technological hardware. IT sector stocks in India symbolise companies that are leading technological advancements and making trends on a global level.
The following trending stocks for 2024 in India have proven that technology can meet investment seamlessly.
Trending IT sector stocks list for 2024
1. Tata Consulting Services (TCS)
TCS shares come under large-cap stocks. The company has a diverse portfolio as it offers solutions such as artificial intelligence, data analytics, cloud services, consulting, and IoT digital engineering. The company has also stepped into the healthcare sector, banking, manufacturing, and even public services.
Headquartered in Mumbai, Tata Consultancy Services is a front-runner in the IT sector.
2. Infosys
Infosys is one of the leading companies in India's IT sector. The company offers some of the best digital transformation services and technological innovations, such as outsourcing services, consultancy, and engineering.
Headquartered in Bengaluru, the focus on artificial intelligence and cloud computing has made the company one of the best in the IT sector.
3. Wipro
This Indian multinational company offers information technology, consultancy, and business process services. Wipro is aggressively pursuing robotics, data analytics, and various other computer services.
Headquartered in Bengaluru, Wipro is a strong player in the IT sector and has been performing consistently well for many years.
3. HCL Technical Infrastructure
A renowned global services and consulting firm, HCL Technical Infrastructure specialises in firm consultancy and IT services. Application development, cybersecurity, cloud services, and digital transformation are some of the functions of the company.
Headquartered in Noida, the firm offers technology-driven solutions to enhance business operations and customer satisfaction.
5. Tech Mahindra
From making farm equipment to being one of the best IT companies, Tech Mahindra has made its presence felt. The company offers financial services and is active in the renewable energy industry, agriculture sector, logistics, and even real estate.
Headquartered in Pune, Tech Mahindra is currently working on leveraging next-generation technologies like 5G, cybersecurity, and quantum computing.
6. Mindtree Ltd.
Mindtree Limited is an IT company that offers research and development services other than basic digital services. The company's IT services include application development and maintenance, as well as business processing and managing services.
Headquartered in Bengaluru, the company has also made its presence felt in the entertainment industry, hospitality industry, insurance, and packaged food.
7. Larsen & Toubro Infotech (LTI)
Also referred to as L&T, this Indian conglomerate is a major player in industrial technology, engineering, military and financial services, along with construction and heavy industry.
Headquartered in Mumbai, this company is also majorly involved in real estate, e-commerce, power generation, and infrastructure
8. Coforge
Formerly NIIT Technologies, this Indian multinational company is working aggressively towards upscaling its functions. Data management, artificial intelligence, cloud infrastructure, business processing solutions, management services, and enterprise applications are some of the functions under its domain.
Headquartered in Noida in Uttar Pradesh, Coforge is categorised as a mid-cap stock
9. Mphasis
Mphasis is an Indian company that offers services for various industries like telecom, logistics, and technology industries. Along with applications outsourcing services, the company also offers infrastructure technologies and architecture guidance.
Headquartered in Bengaluru, the company has grown steadily since 1998.
10. Persistent Systems
Persistent Systems is the most rapidly growing Indian IT firm. This company offers digital designs and strategies, software product engineering, and cloud infrastructure, along with intelligent automation.
Features of the trending stocks in the IT sector
- Ethical governance and visionary leadership of these IT companies enable forward-thinking, leading to technological progress.
- The top-performing stocks belong to companies with the steadiest revenue growth and consistent expansion into other fields.
- Premier IT firms offer comprehensive services and include advanced services like cloud computing and artificial intelligence.
- The top-performing stocks also belong to those companies in the IT sector with a diverse customer base and will mitigate risks associated with market fluctuations.
- Strategic collaborations with other companies and prioritising shareholder value through dividends or stock repurchases are considered sound investments in the IT sector.
How to identify the trending IT stocks?
- Evaluate the gross profit margins of these companies. Companies with high gross profit margins have a high growth potential.
- Study the revenue from exports to understand how much the company is earning in foreign currency. The higher the exports, the more valuable the company is.
- Price-to-book and price-earning ratios are also strong indicators. The lower the ratios of these companies, the better.
- Study the performance of a company over the past five years. Studying Return on Capital (ROC) is a good way to gauge profitability.
- Make sure the investments fulfil your financial goals and align with your investment patterns.
Why invest in IT stocks in India?
- Technological advancements are the way forward. Therefore, these companies are best for sustainable growth and driving innovation.
- These stocks expose investors to diverse market opportunities on a global level.
- The resilience and adaptability of these IT stocks make them a good catch in the dynamic market.
- Owing to a robust commitment to research and strong financial credentials, these stocks are a safe investment option.
How to invest in IT stocks in India?
- Conduct thorough research before investing in any IT sector stocks and study their potential.
- Choose a broker with access to the Indian stock market and open a Demat account so that you can store your IT sector stocks in an electronic form.
- Once you have completed the procedure, start investing. The previously stated trending stocks for 2024 in India are worth investing in.
- You can even invest in a diversified portfolio with the top-performing IT sector stocks through mutual funds or ETFs.
Conclusion
Investing in one of the trending stocks for 2024 in India is a smart move for all investors owing to visionary leadership, consistent revenue growth, and increasing global presence. These IT sector stocks have a long-term value, which further safeguards the investments. These trending stocks for 2024 in India are ideal for investors seeking stable growth in the dynamic global market.
While stocks offer the potential for capital appreciation, bonds provide a more stable income stream. Consider the trade-offs between stocks vs. bonds to find the right fit for your investment goals.
