Muted Profit & Margin Pressures, Top IT Stocks Available At Lower Prices: Buy?

Amid a downturn in the macroeconomy in the global markets, IT stocks performed significantly higher than expected during the pandemic. However, in the past one year, share prices of IT companies have fallen significantly, due to muted profits which led to margin pressures.

Top IT firms like Infosys, Wipro, and TCS have reported lower-than-expected earning reports in the last two quarters. Additionally, the hiring numbers across the industry are also not affirmative, and the freshers are also facing the challenges of delayed onboarding. Globally, the high inflation rate and a possible recession in the US are concerning investors. So, stocks of major US-based IT firms are dipping, impacting similarly the Indian equity markets.

Share performances of top IT Companies

Today, the share price of multibagger company Infosys Ltd fell to Rs. 1,451.85 a piece, at the time of writing. In the last 6 months its stock has dropped by 19.84%, and in the last 1 year it has dropped by 14.15%, on NSE.

The share price of Wipro Ltd fell to Rs. 408.65 a piece, at the time of writing. In the last 6 months its stock has dropped by 29.62%, and in the last 1 year it has dropped by 36.42%, on NSE.

The share price of TCS fell to Rs. 3,065.35 a piece, at the time of writing. In the last 6 months its stock has dropped by 29.62%, and in the last 1 year it has dropped by 36.42%, on NSE.

In the global markets, the share price of Capgemini fell to EUR 167.75 a piece, at the time of writing. In the last 6 months its stock has dropped by 12.01%, and in 2022 it has dropped by 21.43%.

The share price of Cognizant fell to US$ 59.71 a piece, at the time of writing. In the last 6 months its stock has dropped by 32.00%, and in 2022 it has dropped by 33.34%.

The share price of Accenture fell to US$ 269.47 a piece, at the time of writing. In the last 6 months its stock has dropped by 21.15%, and in 2022 it has dropped by 33.83%.

The bearish sentiment in the global markets is impacting Indian markets, hence the top IT stocks are now available at lower prices for investors.