Top IT Sector Stocks in India 2025
Posted by : sachet | Tue Jan 28 2025
On 16 January 2016, the government of India declared the Startup India initiative to assist entrepreneurs in creation of a robust job ecosystem. As a result, a number of information technology startup companies have emerged in a wide range of areas, such as e-commerce, data analytics, artificial intelligence, and more. The strong fundamentals and immense growth of the information technology sector in the country influence investors to look over the IT sector stocks.
What are IT Sector Stocks?
IT stocks are the shares or equities of the companies operating in tech-related industries. These industries include cloud computing, software development, hardware manufacturing, and telecommunications. Over the past few decades, investors have continued to benefit from the rapid growth of the information technology sector in terms of their capital appreciation. To do so, we should identify and assess the fundamentally strong shares. Let’s look at the IT stocks that could help investors diversify their portfolios.
IT Stocks List By Market Capitalisation
| Stock Name | LTP (in ₹) | Market Capitalisation (in cr.) | 52-Week High (in ₹) | 52-Week Low (in ₹) |
|---|---|---|---|---|
| Tata Consultancy Services Ltd. | 4,042.00 | 14,61,000 | 4,592.25 | 3,433.00 |
| Infosys Ltd. | 1,822.50 | 7,57,000 | 1,991.45 | 1,358.35 |
| HCL Technologies Ltd. | 1,824.00 | 4,94,000 | 1,897.00 | 1,235.00 |
| Wipro Ltd. | 561.00 | 2,94,000 | 583.20 | 393.10 |
| Info Edge (India) Ltd. | 7,634.95 | 98,790 | 8,472.00 | 4,520.50 |
| Persistent Systems Ltd. | 5,701.00 | 87,370 | 5,830.00 | 3,135.40 |
| KPIT Technologies Ltd. | 1,304.00 | 35,450 | 1,928.70 | 1,293.05 |
*Data is updated as of 19th November 2024
Overview of IT Sector Stocks
The set of potential IT stocks could be an opportunity for people to appreciate their capital. However, returns are directly proportional to the strength of stocks. To identify the fundamentally strong IT stocks in India, let’s have an overview of the companies and their features.
- Tata Consultancy Services Ltd.
TCS (Tata Consultancy Services Ltd.) was founded in 1968 as a subsidiary of Tata Sons. The company is headquartered in Mumbai, Maharashtra, and has more than 500 offices worldwide. Recently, TCS launched an AI experience zone to experiment with GenAI-powered applications. It will help employees in providing proficient services to the employees and contributing to the business growth. In the list of Fortune India 500, TCS ranked in 7th position. The market capitalisation of this information technology company is INR 14,61,000 crores, and its PE (Price-to-Earnings) ratio is 30.89.
- Infosys Ltd.
Infosys Ltd. was founded in 1981 and is headquartered in Bangalore, Karnataka. The company offers its services across different sectors, including manufacturing, insurance, finance, information technology, and more. As of now, Infosys owns more than 92 sales and marketing offices in countries such as Canada, China, Japan, Europe, the US, and the Middle East. This company recently launched an AI-powered platform called Aster, which will help perform AI-based marketing worldwide. The current market capitalisation of this one of the best IT sector stocks is INR 7,57,000 crores, and its PE (Price-to-Earnings) ratio is 28.05.
- HCL Technologies Ltd.
HCL Technologies Ltd. was founded in 1976 by Shiv Nadar. It is headquartered in Noida, Uttar Pradesh, but has offices in more than 59 countries. Their services include cyber security, cloud-native, SIAM/XaaS products, software development, digital process operations, and IT infrastructure management. Today, HCL has become one of the leading software service providers with an impeccable customer base across the nations, including Europe, the USA, South Africa, the Middle East, and more. HCL Technologies Ltd.’s market capitalisation is INR 4,94,000 crores, and its PE (Price-to-Earnings) ratio is 29.42.
- Wipro Ltd.
Wipro Ltd. was founded in 1945 as Western India Vegetable Products Ltd. However, in 1977, it was named Wipro Products Ltd. The company operates in more than 60 nations and offers services such as system integration, IT consulting, software development, engineering services, R&D, cloud migration, and infrastructure management. Last year, in 2023, Wipro was facing criticism for reducing the salary packages of newly hired employees by 50%. However, the company acclaimed that this is essential for business requirements and to provide the candidate with an immediate opportunity to start their careers. The market capitalisation of this one of the best IT sector stocks is INR 2,94,000 crores, and its PE (Price-to-Earnings) ratio is 25.03.
- Info Edge (India) Ltd.
This Noida-based technology holding company was founded in 1995 and operates multiple platforms, such as Naukri.com, AmbitionBox, Jeevansathi.com, 99Acres.com, and Shiksha.com. Info Edge (India) Ltd. was an early investor in Zomato, with a total investment of INR 86 crores. This company has maintained a CAGR (Compound Annual Growth Rate) of 31%. Despite successful establishment in the past, it operates around 57 offices in more than 30 cities across the country. Info Edge (India) Ltd.’s market capitalisation is INR 98,790, and its PE (Price-to-Earnings) ratio is 211.69.
- Persistent Systems Ltd.
Persistent Systems Ltd. was founded in 1990 and is headquartered in Pune, Maharashtra. Its portfolio includes a wide range of products and services, including transforming customer experience, software development, cloud applications, automation, and more. Persistent announced its initial public offering in 2010 to become listed on the NSE of India. The propelling growth of this company has set an example for other players existing in the information technology sector in India. The current market capitalisation of this one of the best IT sector stocks is INR 87,370 crores, and its PE (Price-to-Earnings) ratio is 71.31.
- KPIT Technologies Ltd.
KPIT Technologies was established in 2018 and currently offers diverse technology solutions, such as ADAS, AUTOSAR, iDART, conventional powertrains, vehicle design, and other digital-connected solutions. This company focuses on adopting next-generation technologies for a mobilised future. KPIT Technologies Ltd. is headquartered in Pune, Maharashtra, but also has operations in different nations such as Japan, Europe, China, the USA, and Thailand. The market capitalisation of this information technology company is INR 35,450 crores, and its PE (Price-to-Earnings) ratio is 48.97.
Top IT Stocks List Based on 1-Year Returns
| Stock Name | 1-Year Returns (%) |
|---|---|
| Persistent Systems Ltd. | 75.94 |
| Info Edge (India) Ltd. | 60.22 |
| Wipro Ltd. | 40.18 |
| HCL Technologies Ltd. | 37.62 |
*Data is updated as of 19th November 2024
Dividend Yield in IT Stocks in 2024
The dividend is a kind of regular income investors can earn. It is apart from capital appreciation. Information technology companies are earning huge profitability in this technological landscape, which helps them announce high dividend payouts to investors. Explore the table for better understanding.
| Stock Name | Dividend Yield (%) |
|---|---|
| HCL Technologies Ltd. | 2.96 |
| Infosys Ltd. | 2.25 |
| Tata Consultancy Services Ltd. | 1.41 |
| KPIT Technologies Ltd. | 0.51 |
*Data is updated as of 19th November 2024
How to Invest?
Individuals should consider the steps mentioned below when investing in IT sector stocks in India.
- Register with a broker and open a demat account by verifying your details.
- Visit the broker’s platform and enter your login credentials.
- Research the best IT stocks in India or consult stock advisors.
- Add funds that you wish to invest in your demat account.
- Purchase the stocks at the listed price and try to diversify your investment portfolio.
- Execute the purchase order and open your portfolio to view holdings.
Let’s Wrap
The rapid growth in the information technology sector in India has made it a popular choice for investment. Today, investors are aware of the capabilities of this promising sector to handle around 53% of the total services exports. Thus, investing in IT sector stocks could build your wealth. It is highly recommended to conduct your own research on the stocks available in the market. Also, you can consider Univest, the best stock advisory platform, to safeguard against market volatility. Try now with 5 free trades and subscribe to the premium at the lowest cost!
FAQs
1. Which IT share will boom in 2025?
Ans. Here are the best IT stocks in India for 2025.
| Names | CMP (in INR) |
| Persistent Systems Ltd. | 5,430.60 |
| Tata Consultancy Services | 3,955.50 |
| KPIT Technologies Ltd. | 1,428.80 |
| HCL Technologies Ltd. | 1,761.40 |
2. How does the IT sector react during economic downturns?
Ans. Despite the immense growth in the information technology sector in India, tech stocks might face hurdles during the recession period. The IT stocks are sensitive to fluctuations in interest rates. For instance, increasing interest rates could decrease the long-term potential and stock valuations in the market.
3. What are the top IT sector stocks in India?
Ans. Here are the top IT stocks to invest in.
- Tata Consultancy Services Ltd. (NSE: TCS)
- Infosys Ltd. (NSE: INFY)
- HCL Technologies Ltd. (NSE: HCLTECH)
- Wipro Ltd. (NSE: WIPRO)
- Info Edge (India) Ltd. (NSE: NAUKRI)
4. Why are IT stocks the best options to invest in?
Ans. Like many other sectors, information technology stocks offer higher growth potential to investors in the long term. However, they also come with high volatility, which creates risks when investing. To eliminate such risks of investing, investors must conduct their own research, or they can consult a stock advisory for informed decision-making.
