Infosys, Wipro to TCS, these IT stocks are at record high

25 Aug , 2021 By : Kanchan Joshi

Stock market today: On account of IT company's corporate clients investing heavily in cloud and digital space, stock market has gone highly bullish on the IT stocks. To meet this demand, IT companies will have to invest heavily and hence large-cap IT companies are expected to emerge primary beneficiaries. According to experts, beginning of 5G advances in India in 2022 is also going to play a major role in the upcoming business of IT companies that are in the telecom hardware and software business. They said that these are the major triggers that have fueled IT companies like Infosys, TCS, Wipro, Tech Mahindra and HCL Tech shares. In fact, these large-cap IT stocks have either hit new life-time high or at their life-time high.

Speaking on the reason for IT stocks scaling at record high; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "In the post-Covid scenario, corporates are going to invest heavily in cloud and digital space. They will invest in these IT segments even when there will no work from home going on. So, IT companies are going to get benefit of this leading to their strong quarterly numbers. However, to get benefit of this opportunity, there will be heavy investment required from the IT companies and hence large-cap IT companies like Infosys, Wipro, TCS, Tech Mahindra, HCL Tech would be the primary beneficiaries of this new business opportunities emerging in the IT space."

Standing in sync with Avinash Gorakshkar's views; Ravi Singhal, Vice Chairman at GCL Securities said, "5G advances are going to begin in India in 2022. In that case, tech enabled telecom IT companies like Tech Mahindra and Wipro will emerge major beneficiaries of this development. Market is keeping all these future developments in mind and hence IT stocks are scaling new highs in this bullish market sentiment."

Asked about the IT stocks that he would recommend, Avinash Gorakshkar and Ravi Singhal said that Infosys and TCS would give sharp upside movement while Wipro and Tech Mahindra stocks are expected to follow the It peers. But, both experts advised investors to avoid fresh position as most of the IT stocks are trading at record high. They advised 'buy on dips' strategy in IT sector and if possible investment in SIP mode in IT stocks will be much better.