Information Technology(IT) sector refers to that section of the market whose products and services involve technology to run a business. This section comprises various services like software development, data management, hardware, and network administration. India has a huge IT sector market, making it one of the best Investment options. Here, we will look at the best IT stocks you should buy in 2024!
IT stocks represent companies that offer services related to the development, selling, and maintenance of computer software and hardware services. It also includes IT consulting, business process outsourcing, cloud computing, cybersecurity solutions, artificial intelligence, and machine learning.
As we all know, technology has expanded itself in almost all fields from agriculture, and education to healthcare. India’s IT sector has shown a strong growth trajectory and plays a key role in the growth of the country’s economy. The IT & BPM industry accounted for 7.5% of India’s GDP in FY23. It is expected to increase this number TO 10% by 2025.
Why you should Buy IT Stocks?
The 21st century has witnessed the emergence of many IT startups, especially in areas of artificial intelligence, e-commerce, data analytics, and fintech. This digital evolution has attracted significant investments indicating an area well-positioned for ongoing innovation and rapid technological changes.
During the COVID-19 pandemic, the IT sector played a crucial role in providing remote work and remained flexible with stable stocks. It enhances the overall performance of the stock market and creates new benchmarks. The Government has also implemented several initiatives to boost entrepreneurship and technological innovation such as Make in India, Digital India, and Startup India.
The future scope of IT stocks looks promising due to the increment in digital adoption across businesses. IT stocks can diversify your portfolio and provide long-term benefits to investors. If you are interested in the technology sector, consider investing in IT stocks.
Top IT Stocks to Buy in 2024
Here is the list of some of the top IT Stocks in India with their market capitalization and share price:
| S. No | Stock | MCap(In Billion INR) | Share Price(In INR) |
|---|---|---|---|
| 1. | TCS | 13750 | 3801 |
| 2. | Infosys | 6260 | 1510.25 |
| 3. | Wipro | 2590 | 495.25 |
| 4. | Oracle Financial Services Software Limited | 853.76 | 9830 |
| 5. | L&T Technology Services Limited | 513.77 | 4857 |
| 6. | HCL Technologies | 3910 | 1444 |
| 7. | LTI Mindtree | 1510 | 5020 |
| 8. | Tech Mahindra | 1350 | 1379 |
| 9. | Tata Elxsi | 451.38 | 7248 |
| 10. | Zensar Technologies | 161.00 | 710.30 |
1) TCS
TCS is an Indian multinational company that provides informational technology and consulting services. It is one of the top IT service brands in India and worldwide. TCS was Founded in 1968 by J.R.D. Tata is a part of the TATA group of Industries. The company has its headquarters in Mumbai, Maharashtra (India).
TCS offers services in the IT sector such as consulting, cloud computing, cognitive business operations, cybersecurity, and business solutions. It is one of the largest employers in the country in private-sector industries.
It is also the second-largest Indian company in terms of market capitalization. TCS has its operations centers across various continents including Asia, Europe, North America, South America, and Africa.
2) Infosys
Infosys is an India-based multinational company that mainly focuses on Information technology, business consulting, and outsourcing services. N.R. Narayan Murthy and their group founded Infosys in July 1981. Infosys is the second-largest IT company in India after Tata Consultancy Services which makes it one of the best stocks to buy in 2024. Infosys has its headquarters in Bangalore, Karnataka (India).
It provides services in areas of software development, maintenance, global management consulting services, cloud, IIP (Infosys information platform), global banking platform, Panaya cloud suite, Infosys Equinox, digital marketing, Artificial intelligence, engineering services, digital marketing, and blockchain.
The company operates in 45 different countries. Infosys works with a vision to create and execute strategic implementations for digital transformation.
3) Wipro
WIPRO is the one of best IT companies in India. It has an abbreviation of its former name, the Western Indian Palm Refinery Oil. It is an Indian multinational company that provides services related to Information technology, business process outsourcing, and consultancy. Wipro was Founded in December 1945 by M.H. Hasham Premji. It is one of the leading tech companies in India. It’s headquarter is located in Bangalore.
The key services of this corporation include digital transformation, cloud computing, computer security, robotics, artificial intelligence(AI), data analytics, and other technology consultancies. Additionally, it also produces and distributes electronics, furniture, and healthcare appliances.
WIPRO is the third largest company in terms of market capitalization after TCS and Infosys. It is spread across six continents worldwide to help and assist trends in digitalization.
4) Oracle Financial Services Software Limited(OFSS)
Oracle Financial Services Software Ltd. is an Indian corporation involved in financial and insurance technology. Harinderjit Singh and their team founded it in 1990. Oracle is a subsidiary of Oracle Corporation. It is headquartered in Mumbai, Maharashtra (India).
This company has two mainstreams- BPD (banking product division) and prime sourcing. Its services include retail, cash management, funds, investment banking, lending, wealth management, payments, treasury, asset management and business analytics, exposure management, enterprise performance management, energy, and commodity trading.
Oracle is heavily Investing in emerging technologies like Artificial Intelligence and cloud computing. Oracle is an almost debt-free company with a debt-to-equity ratio of 0.1.
5) L&T Technology Services Limited
L&T Technology Services Ltd is an Indian multinational company offering technology, engineering research and development services, and product lifestyle management. It was established in June 2012 and had its headquarters in Vadodara, Gujarat (India).
The company assets include engineering services like automotive engineering, industrial Internet of things, embedded system and semiconductor engineering, plant engineering, and medical engineering. It is spread across various continents including Asia, Europe, and the United States.
The company has a strong track record of delivering constant growth. L&T has invested heavily in emerging technologies like AI, IoT, and 5G. It had constant profit growth in recent years which makes it one of the best IT stocks in India.
6) HCL Technologies
HCL Technologies is an Indian multinational tech company offering Information Technology and consulting services. Shiv Nadar founded HCl in August 1976. It is one of the top pioneers in the IT sector. Its headquarters are in Noida, Uttar Pradesh (India).
The company’s products and services comprise HCL Notes/Domino, HCL AppScan, commerce, connections, WebSphere Portal, HCL BigFix, Actian, Starschema, Ingres, HCL Unica, HCL Sametime, iNotes. It also operates in other sectors like defense, aerospace, banking, capital markets, infrastructure services, mining, natural resources, and healthcare.
HCL is spread across 32 countries including India, France, the United Kingdom, the United States, and Germany. The company has reduced debt in recent years.
7) LTI Mindtree
LTIMindtree is an Indian company offering services in Information Technology and Consultancy. Founded in 1996, it is headquartered in Mumbai, Maharashtra (India). It is a part of the Larsen & Toubro group of companies.
The company deals in mobile applications, e-commerce, digital transformation, ERP, and data analytics. The company spreads its operations worldwide, with centers located in India, North America, Europe, Asia Pacific, Africa, and the Middle East. LTIMindtree is almost debt-free and has shown a significant growth curve over the years.
The company has given robust 193% returns in the last 5 years. It has constantly given strong financial results, with a growth rate of over 20% in the last quarter.
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8) Tech Mahindra
Tech Mahindra is an Indian multinational company providing services in Information Technology and Consultancy. It was founded in October 1986 by Anand Mahindra and it is a part of the Mahindra group. It has its headquarters in Pune, Maharashtra (India), and a registered office in Mumbai.
Tech Mahindra is one of the top tech companies in India and was ranked 5th in India’s IT firms list in 2019. The company provides services related to network technology solutions, software development and solutions, and business process outsourcing (BPO).
The company has given 150% returns in the last 4 years with robust profit growth. Analysts have given buying opinions on tech Mahindra share which make it one of the best IT stocks in India.
9) Tata Elxsi
Tata Elxsi is an Indian multinational company offering Information technology services. It was Founded in 1989. The company is headquartered in Bengaluru, India. It is also a big tech company in India and has its centers established worldwide.
The company deals in design and technology services in various industries such as automotive, communications, broadcast, transportation, healthcare, cloud, mobility, virtual reality, and artificial intelligence. With its world-class products and development process the company is rapidly growing and efficiently delivering its top services to consumers.
Tata Elxsi has delivered massively 700% returns in the last five years. Foreign Institutions are constantly increasing their holding in the share. The company is almost debt-free. Stock is good with Strong fundamentals and a bright future.
10) Zensar Technologies
Zensar Technologies is an Indian information technology services company. It was Founded in 1991 and It has its headquarters in Pune, Maharashtra (India). Zensar is a subsidiary of RPG group and has over 11000+ employees working.
The key services of the company include artificial intelligence, digital supply chain, data management, cloud infrastructure, and enterprise applications. The company is almost debt-free and has outperformed the Sensex by a good margin. You can watch out for Zensar as it is showing consistent growth and a positive outlook in the IT software Industry.
Conclusion
The IT industry is highly competitive and at the same time creates opportunities for its investors by offering a wide range of services. If you are looking for IT stocks, you can try out companies with new, innovative, and game-changing technologies as these IT firms tend to do better in the market.
Make sure that the company you choose to invest in provides the right tools for growth and reliable services. By keeping yourself updated about industry trends and consumer interests, you can smartly invest in IT stocks and earn high profits. Also, consider factors like companies’ partnerships services, and products to know how it is performing in the market.
Stay informed, do your research, and regularly view your investment strategy to ensure risk tolerance and financial goals.
