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Top-performing IT stocks you can add to your portfolio in 2024

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Published Date: 15 Mar 2024Updated Date: 09 Jan 20256 mins readBy MOFSL
Best performing IT stocks

Introduction:

The Information Technology (IT) sector is crucial to the Indian economic growth. Currently constituting about 7.7% of the Gross Domestic Product (GDP), it is anticipated to increase its contribution to approximately 10% by 2025. India presently holds the global leadership position as the largest provider of IT services, primarily due to the ample pool of skilled professionals and cost-effective labour in the country.

As an investor, you invest in India’s IT stocks to leverage the growth potential in this sector and gain high long-term returns. In this article, you will explore what IT stocks are and some of the top IT-sector stocks in India that you can add to your portfolio in 2024. Continue reading.

What are IT stocks?

IT stocks represent the ownership stakes or equity shares of companies engaged in Information Technology businesses. These companies predominantly offer services and solutions related to technology. In other words, they leverage computers, software, and various technologies to assist businesses and organisations in multiple facets of their operations.

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Some common services that IT companies offer include software application development, computer network management, cybersecurity solutions, and data storage and management solutions. These services help businesses effectively utilise technologies to improve efficiency, communication, and overall revenues.

Top IT stocks to invest in India in 2024

Picking the right IT stocks for investment can be a tricky thing. They are usually highly volatile but exhibit strong growth potential. To make your task easier, we have handpicked the top IT stocks in India that you can buy in 2024:

1. Tata Consultancy Services (TCS)

As one of the largest IT services companies globally, TCS has maintained its dominance in the Indian market. With a robust portfolio spanning consulting, business process outsourcing, and IT services, TCS remains a reliable choice for investors. The company's strong emphasis on digital transformation and innovation positions it well to capitalise on the evolving IT landscape.

As of 28 February 2024, TCS’ shares were trading for Rs. 4,094.35 per share at the National Stock Exchange (NSE) and Rs. 4,096.30 per share at the Bombay Stock Exchange (BSE). The company’s market capitalisation and ROE stood at Rs. 14,80,576 crores and 44.35% respectively. 

2. Infosys Limited

Founded in 1981 by Mr. N. R. Narayan Murthy, Infosys has been a stalwart in the Indian IT sector, renowned for its commitment to cutting-edge technology solutions. The company's focus on digital services, artificial intelligence, and cloud computing has kept it at the forefront of industry trends. Infosys continues to demonstrate resilience and adaptability, making it a compelling option for investors seeking stability and growth.

As of 28 February 2024, Infosys shares were trading for Rs. 1,654.70 per share at the NSE and Rs. 1,655.05 per share at the BSE. 

3. Wipro Limited

Wipro has emerged as a key player in the IT sector, offering diverse services, including IT consulting, business process services, and software solutions. The company's strategic initiatives in digital transformation, coupled with its global presence, position it favourably for the future. Wipro's focus on sustainability and innovation adds an extra layer of appeal for socially conscious investors.

As of 20 February 2024, Wipro’s shares were trading for Rs. 519.10 per share at the NSE and Rs. 519.15 per share at the BSE. The one-year return stood at 33.84%.

4. HCL Technologies Limited

HCL Technologies has carved a niche for itself in the IT sector, particularly in areas like cybersecurity, cloud computing, and IoT. With a strong emphasis on research and development, HCL continues to expand its service offerings and global footprint. Investors may find HCL Technologies an attractive option, given its consistent growth and commitment to technological excellence.

As of 29 February 2024, HCL Technologies’ shares were trading for Rs. 1,644.10 per share at the NSE and Rs. 1,644.45 per share at the BSE. The one-year return stood at 52.93%.

To conclude

IT stocks are known for their dynamic nature and high ​​​​​​​volatilty. You need to be cautious while investing in them. Staying invested in these stocks for the long term can fetch very good returns, as has been the trend historically. Additionally, you must consider your risk tolerance, conduct thorough research, and understand the market dynamics to make well-informed investment decisions.

 

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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