Best IT Sector Stocks in India 2024

India's information technology (IT) sector has long been a cornerstone of the country's economic growth. The year 2024 is likely to be yet another pivotal year for this dynamic industry. As global digital transformation increases, Indian IT companies are well-positioned to capitalise on the increasing demand for technology services, cloud computing, artificial intelligence, and cybersecurity solutions. 

Top IT Sector Stocks in India in 2024

Being the information technology hub of the world, India has plenty of IT sector stocks. Here are some of the best IT sector stocks that you can consider including in your portfolio in 2024.  

1. Tata Consultancy Services Limited 

Tata Consultancy Services, often referred to as TCS, is India's largest IT sector share in terms of market capitalisation. The company provides IT services, consulting, and business solutions to a wide range of organisations from different sectors. Some major industries TCS serves include banking, communications, education, healthcare, insurance, manufacturing, retail, consumer goods, and life sciences, among others. 

The company has as many as 16 indigenously developed and patented products and solutions. In addition to providing a multitude of different IT and IT-related services, TCS is also actively involved in research and global studies that generate unique data-driven insights. 

2. Infosys Limited 

Infosys Limited is the second-largest player in the stock market’s IT sector. Known for its strong corporate governance and innovative approach, the company has successfully transitioned from a traditional IT services provider to a digital transformation partner for its clients. 

Infosys is banking heavily on cutting-edge technologies like cloud computing, data analytics, and artificial intelligence to provide a wide range of IT and IT-related services to as many as 26 different industries in India. The company has developed around 10 different platforms on its own, each one catering to the needs of companies in different industries.    

3. Mphasis Limited 

Another multinational IT sector share, Mphasis Limited, is fast gaining significant traction within the industry in recent years due to its focus on niche, high-growth areas within the technology landscape. Some of the tech areas that the company focuses on include blockchain, enterprise automation, DevOps, agile IT development, cyber security, SalesForce, AWS, and Azure.

Mphasis Limited’s focused approach and deep domain expertise in the BFSI (banking, financial services, and insurance sectors) make it one of the few enterprise-focused IT companies in India. The company uses its trademarked ‘Front2Back’ approach to create a personalised experience for its clients and drive transformation.  

4. KPIT Technologies Limited 

KPIT Technologies Limited is one of India’s most exciting IT sector stocks. The company’s primary focus is on building IT solutions for the automotive industry. From solutions for autonomous driving and Advanced Driver Assistance Systems (ADAS) to connected vehicle systems and powertrains, KPIT Technologies is deeply entrenched in future-proof technologies.  

The company has engineering centres in multiple locations throughout the world, including India, Thailand, Europe, the USA, Japan, and China. KPIT Technologies Limited has more than 15 years of experience in AUTOSAR, which is a platform dedicated to the development of open and standardised software for electronic control units (ECUs) used in automobiles.  

5. Zensar Technologies Limited 

Zensar Technologies Limited is the only small-cap stock on this IT sector share list with significant growth potential. In recent years, the company underwent a major strategic transformation that focused on digital services by shedding non-core businesses to improve its growth profile.

Zensar Technologies Limited’s service portfolio spans multiple segments, namely, experience engineering, advanced engineering, data engineering and analytics, application services, cloud infrastructure, and IT security. The company’s various IT services and solutions are used in various industries, such as hi-tech engineering, banking and financial services, insurance, telecom, healthcare and life sciences, manufacturing, and consumer services.   

Conclusion

The Indian stock market’s IT sector continues to offer attractive investment opportunities even in 2024. With companies adapting to the changing technology landscape and leveraging global digital transformation trends, now may be the right time to gain exposure to IT sector stocks. 

However, as an investor, you should consider your risk appetite, investment horizon, and overall portfolio strategy when selecting IT stocks. The Research 360 platform, powered by Motilal Oswal, can help you find fundamentally strong IT sector shares. In addition to that, with the tools available on the platform, you can also track the entire sector as a whole to determine potential investment opportunities.