“IT Stocks: The Best Investment Opportunity for the New Fiscal Year 2024-25”
As the financial year 2023-24 came to a close, investors are now looking for the best stocks to buy in the new fiscal year. With most Indian indices reaching record high levels, the IT sector is emerging as a promising investment opportunity after a prolonged period of sell-offs.
The recent downturn in the Nifty IT index following Accenture’s weak quarterly numbers has created a buying opportunity for savvy investors. Stock market experts believe that Indian IT stocks, which closely track ADR prices, are currently in a base-building phase. Despite this, the Nifty IT index is still around 10 percent below its all-time high, presenting a potential for growth in the coming months.
VLA Ambala, Founder of Stock Market Today, highlighted the reasons why IT stocks are attractive in the current market scenario. He pointed out that Accenture’s lowered revenue projections have had a ripple effect on ADR prices of Indian IT giants like Infosys and Wipro. With the US market facing challenges such as high inflation and slower economic growth, IT stocks could face underperformance and reduced revenue. However, Ambala emphasized that the current bearish trend in the US market could be an opportunity for long-term investors to accumulate quality IT stocks.
Sandeep Pandey, Founder of Basav Capital, shared his investment strategy for the IT segment, suggesting a systematic investment plan (SIP) to take advantage of potential gains in the sector. He recommended focusing on large-cap IT stocks like TCS, Wipro, Infosys, Coforge, and HDFC Tech for long-term investment.
In the last fortnight of the previous financial year, major IT stocks like TCS, Infosys, and Wipro witnessed significant corrections in their share prices. This presents an attractive entry point for investors looking to capitalize on the future growth potential of these companies.
As investors gear up for the new fiscal year, the IT sector stands out as a lucrative investment opportunity with the potential for significant returns. However, it is essential for investors to conduct thorough research and seek advice from certified experts before making any investment decisions.
