According to business standards, India’s IT sector is a powerhouse, projected to reach $138.9 billion in spending by 2024, growing at 13.2% year-on-year. The industry contributes approximately 7.4% to India’s GDP and employs around 5.4 million people, making it a vital component of the nation’s economic landscape.
On December 31, information technology equities fell under pressure. US Treasury yields remain above 4.5 percent, putting pressure on growth-sensitive stocks such as those in the technology sector.
Moreover, Wall Street’s technology-heavy Nasdaq Composite index also fell more than 1 percent overnight, sending bearish signals to domestic rivals. Aside from that, growth prospects for IT majors in Q3 remain low due to weak seasonality, further hurting market sentiment.
Manik Taneja of Axis Capital told CNBC-TV18 that Indian IT companies are better positioned in a “Trump 2.0” scenario than “Trump 1.0.” While Q3 may see weaker performance, US optimism could boost demand. However, higher valuations make global tech companies more appealing than Indian IT firms, he noted.
Here are the IT stocks that fall up to 2% after the Information technology sector is under pressure.
Tata Consultancy Services Ltd
With a market capitalization of Rs 14.79 lakh crore, the shares were trading at Rs 4,089.60 per share, decreasing around 2 percent as compared to the previous closing.
JP Morgan, one of the well-known brokerages globally, gave a ‘Buy’ call on the IT stock with a target price of Rs 5,100 apiece, indicating a potential upside of 25 percent from Tuesday’s price of Rs 4,090 per share.
Infosys ltd
With a market capitalization of Rs 7.80 lakh crore, the shares were trading at Rs 1,878.75 per share, decreasing around 2 percent as compared to the previous closing.
Motilal Oswal, one of the well-known brokerages in india, gave a ‘Buy’ call on the IT stock with a target price of Rs 2,200 apiece, indicating a potential upside of 17 percent from Tuesday’s price of Rs 1,878 per share.
Tech Mahindra ltd
With a market capitalization of Rs 1.67 lakh crore, the shares were trading at Rs 1,706 per share, decreasing around 2.28 percent as compared to the previous closing.
CLSA, one of the well-known brokerages globally, gave a ‘Buy’ call on the IT stock with a target price of Rs 1,884 apiece, indicating a potential upside of 10 percent from Tuesday’s price of Rs 1,706 per share.
Coforge Ltd
With a market capitalization of Rs 64,570.79 crore, the shares were trading at Rs 9,657.70 per share, decreasing around 2 percent as compared to the previous closing.
Motilal Oswal, one of the well-known brokerages in india, gave a ‘Buy’ call on the IT stock with a target price of Rs 11,500 apiece, indicating a potential upside of 19 percent from Tuesday’s price of Rs 9,657.70 per share.
Persistent Systems Ltd
With a market capitalization of Rs 1.00 lakh crore, the shares were trading at Rs 6,474.85 per share, decreasing around 2.44 percent as compared to the previous closing.
CLSA, one of the well-known brokerages globally, gave a ‘Buy’ call on the IT stock with a target price of Rs 2,200 apiece, indicating a potential upside of 31 percent from Tuesday’s price of Rs 6,477.10 per share.
Written by:- Abhishek Singh
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