If you are planning to invest in IT stocks, now could be a good time to start. Despite recent concerns around tariffs announced by US President Donald Trump in April, experts remain positive on the IT sector’s future.
Gaurang Shah, Head Investment Strategist at Geojit, shared his strategy on Share Market Opening with BT TV. He said, “We have fairly equal weight on all the three segments of IT, so be it large cap, mid cap or small cap. And we have been positive since a very long time.” He explained that even though difficult times are expected, with possibly two to three quarters of lower earnings, it’s still a good sector to invest in.
Shah recommends focusing on established large-cap companies like Infosys, TCS, HCL Tech, and Tech Mahindra. For mid-cap opportunities, he suggests Coforge, LTI Mindtree, and L&T Technologies. Among smaller companies, KPIT Tech is a good option.
He also highlighted the importance of investing in firms advancing into AI and having diversified product platforms. “The most sensible thing to do is don’t think as if there is no tomorrow. Start at current levels,” he said. He advised investors to begin with about 25-30% allocation at present and gradually add more if prices fall.
However, Shah sounded a word of caution on Wipro, stating, “We are underweight Wipro due to concerns over its earnings.”
With the ongoing uncertainty around the India-US trade agreement, being stock-specific rather than sector-specific is key. Smart investors are advised to carefully pick a few strong companies across large, mid, and small-cap IT stocks rather than investing indiscriminately.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)