TCS vs Infosys vs HCL Tech share: Which IT stock to buy amid bank crisis in US

TCS vs Infosys vs HCL Tech share: After emergence of Silicon Valley Bank, Signature Bank, First Republic Bank collapse, Indian stock market has remained a sell on rise market. After bank  crisis in US, Indian IT stocks have received heavy beating as they have strong business in these banks and in the US. According to stock market experts, Indian IT companies in mid-cap and large-cap space generate around 40 per cent of their business from the BFSI segment in the US. As the bank crisis in US has affected BFSI segment, Indian It companies will lose good amount of business in near term. However, they advised investors to wait for the Q4FY23 results as Indian It companies will disclose their exposure in the crisis hit US-based banks.

Speaking on impact of bank crisis in US on Indian IT companies, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Indian IT companies get around 40 per cent of their US business from the BFSI segment. So, series of bank collapses are going to impact on quarterly numbers of the Indian IT companies. But, exact exposure is expected to arrive in the Q4FY23 results, which is expected in near two to three weeks. So, positional long term investors are advised to wait for Q4 results of Indian IT companies as the result season is fast approaching."

IT stock to buy today

On TCS vs Infosys vs HCL Technologies shares, Avinash Gorakshkar said that TCS is better placed than other IT mid-cap and large-cap stocks as the Tata group company has developed some business in domestic market as well. Apart from this, the company is sitting on huge cash that is going to sustain its growth for next six to eight months. Among Infosys and HCL Technologies shares, HCL Tech shares are better placed."

Suggesting long term positional investors to go for TCS shares, Ravi Singhal, CEO at GCL Broking said, “In comparison to TCS, Infosys and HCL Technologies shares, TCS is looking more attractive than other IT stocks and one should trying adding this stock in one's portfolio at around ₹2,900 apiece levels for at least two to three year time horizon. those who have TCS shares in their portfolio can add more at ₹2,900 apiece levels. However, a fresh investor can start accumulating from current levels to its current 52-week lower levels.”

Ravi Singhal of GCL Broking said that bank crisis in US is going to work in favour of long term investors as the IT stocks are expected to bounce back strong once these short-term crisis become a passé.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.