Experts suggest buying TCS, Infosys, Mphasis, Coforge, and Persistent Systems as Indian IT stocks may rally. After Accenture’s strong results on Wednesday, foreign investors started buying these shares. Anuj Gupta said, "As these stocks are in the bull trend ahead of the expected rally, an investor can expect a sharp upside."
Top 5 IT stocks to buy today: Experts belive these 5 IT stocks would outperform others as the Nifty FPIs index heatmap suggests that foreign investors started buying these shares ahead of the Accenture results
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.
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."
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.