‘IT stocks had good run but many have still some steam left.’ Top picks

Technology stocks stood as the top performers of 2020. Analysts expect the performance to continue and translate into revenue estimate upgrades. “IT stocks had good run but many have still some steam left. We expect another round of upgrades, albeit marginal, in revenues estimates for FY2022E post- 3QFY21 results,” says analysts at Kotak Securities. The brokerage expects Infosys to lead the industry on growth in FY2022E and is their top pick.

“A few stocks are attractive despite the rally. BUY Infosys and Tech Mahindra. Wipro and HCLT are interesting as well,” says the brokerage. Kotak Securities lists three main reasons for the growth in IT stocks. The reasons are as below: