ewsba.se
Stock market today | IT stock to buy today: Amid positive buzz around the India-US trade deal, Indian IT stocks have witnessed a resurgent rally since early-morning trading on Wednesday. Shares of the leading Indian IT majors, Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, Tech Mahindra, etc., demonstrated a sharp upside movement. However, L&T Technologies Services shares attracted the most attention from bulls, rising up to 10% during the intraday session.
According to stock market experts, this tectonic rally in Indian IT stocks can be attributed to positive buzz around the India-US trade deal. They said that a stable Indian Rupee and an AI-meltdown are also fueling the resurgence in Indian stocks.
Pointing towards the India-US trade deal as the primary reason for the resurgent rally in the Indian IT stocks, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “The US Secretary of State Marco Rubio's visit to India and Donald Trump's statement at the Oval Office have triggered a positive buzz around the India-US trade deal. The US President has said that India and the US are ‘pretty close’ to a trade deal, which will be very different from earlier pacts. The US Secretary of State MarcoRubio also signalled about the closing of the deal in the near-term.”
Gorakshkar said the India-US trade deal is a positive development for Indian IT companies, as it will provide clarity after Trump's tariffs.
“The stability in the Indian Rupee is also a reason for IT stocks' rally. As Indian IT companies deal in the US Dollar (USD) terms, a stable local currency would provide better returns on the deal wins as the continued depreciation of the Indian Rupee had created an uncertainty about the pricing of their services,” said Anuj Gupta, a SEBI-registered market expert.
Pointing towards the AI meltdown, Amit Goel, Chief Global Strategist at PACE 360, said, “There is buzz about the AI blowout, but people fishing out money from AI-led assets are now shifting money to the emerging markets, as the bond market is also in an overbought condition, and it can tumble any time now. As the Indian stocks are at a highly discounted prices and most of the IT stocks are available at an attractive P/E multiple, some FPIs' buying is also a reason for strong upside movement in the Indian IT stocks.”
On which IT stock to buy amid the tectonic rally in the IT stocks, Avinash Gorakshkar said, “One should take a lesson from Trump's tariff era. You can do an enormous number of trade deals with the US, but what is the longevity of such deals when Donald Trump is at the White House? So, there should be some discount to the India-US trade deal, while choosing an IT stock. I would suggest just one IT stock to have in on's portfolio and that should be an emerging challenger in the SAP business, because this business would sustain even when there is trade standoff between the two nations.”
Avinash Gorakshkar advised looking at Coforge shares to buy in the current rally in the Indian IT stocks.
Decoding the technical chart of Coforge shares, Mahesh M Ojha, VP — Research and Business Development at KC Securities, said, “The stock is looking positive on the technical chart pattern. It is sttanding at an immediate support of ₹1,906, whereas ₹1,855 to ₹1,860 price band is working as a major support for the IT stock. On tghe upper side, Coforge shares are facing resistance at ₹1,982. On breaking above this resistance, Coforge share price may go up to ₹2,052.”
Expecting an upside in Coforge shares, Sumeet Bagadia, Executive Director at Choice Broking, said, “Existing shareholders and fresh investors can buy and hold the stock for the upside targets of ₹2,025 and ₹2,150, maintaining a strict stop-loss at ₹1,850.”
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).
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.