Stocks to buy now: TCS, Wipro to Infosys — Is it wise to accumulate IT stocks in FY25?
Stocks to buy now: After witnessing an impressive trend reversal in the last session of the financial year 2023-24, stock market investors are busy finding out the value picks for their portfolio in the new fiscal. As most of the Indian indices are at record high levels, investors are looking at the IT segment as the segment has remained under the sell-off heat for a long time. So, it would be prudent to know whether one should accumulate IT stocks in the new financial year 2024-25.
According to stock market experts, after the Accenture share price crash on weak quarterly numbers, the Nifty IT index witnessed a sharp downside move as most of the frontline Indian IT stocks came under the sell-off heat. They said that after the weak guidance by Accenture, ADR prices of Infosys and Wipro have come under pressure. As Indian IT stocks follow ADR prices, Indian IT stocks are expected to remain in the base-building mode.
However, they advised long-term investors to take advantage of this scenario as the Nifty IT index is still nearly 10 percent away from its record high made in January 2022. On why IT stocks look attractive in the stock market today, VLA Ambala, Founder of Stock Market Today said, "Investors' high expectations from Accenture met disappointment after its net revenue projections were lowered from 2-5% to 1-3%. This downgrade weakened its share trading in the US markets, raising concerns about the actual valuation of IT stocks.
Accenture’s cautionary forecast has further affected the ADR shares of Wipro and Infosys, as IT giants tend to track and mimic ADR trends closely. Since it’s currently trading on a bearish note in the US stock markets, it could raise concerns. IT stocks also depend on the US market for
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