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.
Top 3 triggers for the Indian IT stocks
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.
India-US trade deal buzz
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.
Stable Indian rupee
“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.
AI-meltdown
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.”
IT stock to buy
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.
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.
