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Top 5 IT stocks to buy today: After Accenture's better-than-expected results announcement, market experts are expecting a big rally in Indian IT stocks. They said that shares of Indian IT companies listed on the NYSE saw strong buying post-Accenture results, which also hints at a big gap-up opening for Indian IT stocks when they reopen on Monday. Infosys share price finished close to 6%, whereas Wipro shares ended over 6% at the NYSE after Accenture's results were announced on Wednesday.
According to stock market experts, Indian IT companies receive more than 50% of their average business from the US, with Accenture playing a major role. After the better-than-expected Accenture results, the market expects similar Q2 results from the Indian IT giants. As the market has a track record of discounting events well before they take place, we can expect strong buying in Indian IT stocks on Monday. However, they suggested that short-term investors take a cue from the Nifty FPI heatmap. They said that of the 50 stocks in the Nifty FPI index, 20 ended in the green despite a heavy stock market crash on Thursday. Of those 20 stocks, 5 belong to the IT segment, suggesting foreign investors were betting heavily on these Indian IT stocks ahead of Accenture's results on Thursday.
Decoding the Nifty FPI heatmap to get a higher return on one's money, Anuj Gupta, a SEBI-registered market expert, said, “Nifty FPI 150 Index heatmap signals about the top 50 Indian stocks, which is highly traded by the foreign investors. As FPIs are bullish on certain stocks, they are expected to attract DIIs as well. As the Accenture results is expected to attract DIIs on Monday, it would be important to know the IT stocks that are expected to outperform others. For this, they have two options: one is the Nifty FPI heatmap, and the other is Indian IT stocks listed on the NYSE.”
The SEBI-registered expert said that of the 50 stocks in the Nifty FPI Index, 20finished in the green despite a heavy sell-off on Thursday. Of those 20 stocks, 5 are in the IT segment: Mphasis, Coforge, Infosys, TCS, and Persistent Systems.
“As these stocks are in the bull trend ahead of the expected rally, an investor can expect a sharp upside in these 5 IT stocks when the market opens,” said Anuj Gupta.
On why the Nifty FPI index is important in selecting an intraday stock, Anuj Gupta said, “Nifty India FPI 150 Index tracks the top 150 accessible and investible stocks from the Nifty 500 tailored for foreign portfolio investors.”
On why Accenture results hold the key for the Indian IT companies, Mahesh M Ojha, VP — Research & Business Development at KC Securities, said, “Indian IT companies draw more than 50% of their business from the US. Accenture plays a big role in it. Some Indian IT companies draw more than 50% of their business from the US. So, we are bullish on those IT stocks that draw more than 50% of their business from the US.”
Ojha said that shares of Sagility, Birlasoft, Mphasis, Persistent Systems, and LTIMindtree are expected to outperform other Indian IT stocks, as they derive more than 50% of their business from the US. Compared with the Nifty FPI heatmap, Mphasis and Persistent Systems have a higher probability of moving higher, as they are expected to receive favour from both FPIs and DIIs.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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