IT Stocks That Mutual Funds Are Buying
Mutual Funds
IT Stocks: Mastec, a smallcap IT company, has been added to the portfolios of three active schemes recently. In total, it is included in the portfolios of five active schemes.
Over the past year, the IT sector has faced challenges. In 2023, the S&P BSE TECk (TRI) index has experienced a 5% decline, while the S&P BSE SENSEX (TRI) index has gained 3% during the same period. This has led to weakness in mutual fund schemes that have a higher allocation to IT stocks.
According to Meeta Shetty from Tata Mutual Fund, the IT sector has been underperforming the overall market since last year. Concerns regarding a recession in the US market and a significant increase in interest rates have impacted IT stocks negatively. Additionally, the recent bankruptcy of some US banks has added further pressure on IT stocks.
The latest quarterly results and management commentary of IT companies indicate a challenging outlook for the sector.
Given that the United States holds the largest market share for IT services globally, the potential recession in the US market will continue to exert pressure on the IT sector in the near future.
Additionally, market observers will closely monitor the adoption of new artificial intelligence technology, as it may impact revenue and introduce further challenges going forward.
It is noteworthy that the majority of IT companies possess substantial cash reserves, indicating a strong balance sheet.
Despite experiencing significant declines thus far, the current values of these stocks appear attractive. Despite the challenges faced, a few selected IT companies have displayed commendable resilience and demonstrate promising growth prospects.
From a valuation standpoint, the sector is currently trading around its long-term average, presenting new investment opportunities within this sector.
Consequently, we are providing a list of some prominent mid and small cap IT stocks that have been added to the portfolios of active fund managers in the past three months.
Please note that these portfolio figures are sourced from ACEMF and are accurate as of April 2023.
IT Stocks List
Coforge: Coforge is categorized as a midcap IT company. Recently, 23 active schemes have incorporated this stock into their portfolios,
with a total of 88 active schemes holding it. Some notable schemes that have added Coforge to their portfolios include Aditya Birla, SL Focused Equity, and Franklin India Technology Fund.
Mphasis: Mphasis is classified as a midcap IT company. Recently, 17 active schemes have included this stock in their portfolios, with a total of 91 active schemes holding it.
Prominent schemes that have added Mphasis to their portfolios include HDFC MNC and Bandhan Core Equity Fund.
Sonata Software: Sonata Software is categorized as a smallcap IT company. In recent times, 10 active schemes have incorporated this stock into their portfolios, and it is currently held in a total of 26 active schemes.
Notable schemes that have added Sonata Software to their portfolios include Union Value Discovery and HSBC Equity Savings Fund.
CE Info Systems: CE Info Systems is considered a smallcap IT company. Recently, 6 active schemes have included this stock in their portfolios, and it is currently held in a total of 18 active schemes.
Some noteworthy schemes that have added CE Info Systems to their portfolios include PGIM India Small Cap and Union Retirement Fund.
Affle (India): Affle (India) is classified as a smallcap IT company. Recently, 5 active schemes have added this stock to their portfolios, and it is included in the portfolios of a total of 28 active schemes.
Some notable schemes that hold Affle (India) include ITI Flexi Cap and ICICI Pru Business Cycle Fund.
Zensar Technologies: Zensar Technologies is categorized as a midcap IT company. In recent times, 3 active schemes have added this stock to their portfolios, and it is held in a total of 28 active schemes.
Prominent schemes that include Zensar Technologies are Quant Quantamental and Franklin India Opportunities Fund.
Mastek: Mastek is a smallcap IT company. Recently, 3 active schemes have added this stock to their portfolios, and it is included in the portfolios of a total of 5 active schemes.
Noteworthy schemes that hold Mastek include ICICI Pru Retirement Fund-Pure Equity and ICICI Pru Midcap Fund.
KPIT Technologies: KPIT Technologies is considered a midcap IT company. Recently, 2 active schemes have added this stock to their portfolios, and it is held in a total of 30 active schemes.
Some notable schemes that include KPIT Technologies are Baroda BNP Paribas Multi Cap and Union Small Cap Fund.
Oracle Financial Services Software: Oracle Financial Services Software is classified as a midcap IT company.
Recently, 2 active schemes have added this stock to their portfolios, and it is included in the portfolios of a total of 28 active schemes.
Notable schemes that hold Oracle Financial Services Software include Shriram Flexicap and Shriram Balanced Advantage Fund.
