India’s biggest equity fund is piling into IT stocks in a contrarian bet on valuation recovery, sparking a rally in Infosys and Wipro shares.
Infosys rallied 3% after India’s largest equity fund disclosed a contrarian buy, targeting the IT giant as a key undervalued bet. The fund’s move signals institutional conviction in a sector turnaround despite near-term headwinds.
Infosys, as a market leader with a large client base, is expected to gain disproportionately from a sector recovery. The fund’s buying adds immediate demand and signals confidence in its earnings resilience.
Analysts see Infosys testing ₹1,800 if global sentiment stabilizes, but caution that a break below ₹1,500 could signal further weakness.
Wipro shares jumped after reports the equity fund added the stock to its contrarian IT bet. The firm’s renewed focus on digital transformation and cost efficiency aligns with the fund’s outlook for a sector rebound.
Wipro trades at a lower valuation multiple than Infosys, offering deeper value, but it carries higher execution risk as it undergoes a leadership transition.
The fund’s horizon appears to be 12-18 months, targeting a recovery when global IT budgets normalize.
India’s largest equity mutual fund is making a bold contrarian move into IT stocks, buying shares of top software exporters like Infosys and Wipro. The fund’s manager cited beaten-down valuations and long-term digital demand despite sector-wide pessimism. The buying spree lifted both stocks in early trade, with analysts split on whether the sector has bottomed.
The fund sees deep value after a sharp sell-off in IT stocks, driven by global recession fears. With digitization trends intact, the manager believes current prices offer a rare entry point before earnings recover.
The fund is reportedly accumulating large-cap IT names like Infosys and Wipro, which have strong balance sheets and diversified revenue streams, positioning them to rebound when demand returns.