TCS vs Infosys vs HCL Tech: Which IT major should you pick for long term?

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Tata Consultancy Services (TCS), Infosys and HCL Technologies (HCL Tech) recently declared their September quarter (Q2) results. The Q2 earnings for all three firms either met or exceeded analyst expectations on the back of strong deal wins and a rise in revenue, however, narrowing revenue growth guidance and weak outlook were key negatives. But which of these three is the best of the lot? Let's find out: Nifty IT has outperformed Nifty in 2023 YTD, after underperforming by 30 percent in 2022.

The IT index has advanced over 12 percent this year so far as against a 9 percent jump in benchmark Nifty. However, the index is in line with the benchmark in the last 1 year with both indices gaining around 15 percent each in this period. In the last 1 year, HCL Tech has risen the most, almost 25 percent, followed by TCS, which added 14 percent while Infosys is the weakest of the lost, up just 2 percent.

In 2023 YTD as well, the trend is the same. HCL Tech gained the most, 18 percent, followed by TCS, which was up 9 percent. However, Infosys lost almost 4 percent in 2023 so far.

However, after the results, while TCS and Infosys declined, down 1.8 percent and 2.6 percent, respectively, HCL Tech was in the green, up 2 percent. In the 10 months of 2023 so far, Infosys and HCL Tech have been positive in 6 months and in the red in 4. TCS, on the other hand, has been in the green in 7 of the 10 months so far this year.

Infosys gained the most in July, up 6 percent and shed the most in April, down 12 percent. Meanwhile, HCL Tech added the most in May, up 7.6 percent and declined the most in July, down 6 percent. Finally, TCS has advanced the most in January, up 5.2 percent and lost the most in March, down 3.2 percent.