Despite the downward pressure seen in mid-cap and small-cap indices, large-cap IT stocks have been on an upward trajectory in recent sessions. Today, both TCS and Wipro recorded a new 52-week high on NSE respectively.

Stock market experts note that most indices, including those for small-cap and mid-cap stocks, are currently at record highs. However, large-cap IT stocks, despite their discounted prices, have not participated in the recent market rally. Consequently, both foreign institutional investors (FIIs) and domestic institutional investors (DIIs), including mutual funds and retail investors, are pouring money into these large-cap IT stocks.

Furthermore, there remains untapped potential for large-cap stocks to experience further upside movement, as they have not mirrored the recent surge seen in small-cap and mid-cap stocks. These experts believe that large-cap IT stocks such as Infosys, Tata Consultancy Services (TCS), Tech Mahindra, HCL Tech, and Wipro are currently in an uptrend due to their appealing valuations and the potential for significant gains in the medium to long term. As a result, they recommend that positional investors consider buying Wipro shares in the current market environment.

Experts attribute the resurgence of IT stocks to the shift in focus by FIIs and DIIs from small-cap and mid-cap stocks to large-cap options. Given the large-cap IT stocks’ relative underperformance in the recent market rally, mutual fund managers, retail investors, and FIIs are now heavily investing in these opportunities. This preference for large-cap stocks suggests that there is still substantial upside potential in the IT sector.

Regarding specific investment advice, some experts highlight the attractive valuations of Wipro shares. They suggest buying this IT stock at current levels and continuing to accumulate it during any price dips as long as it remains above ₹400 per share.

According to some experts the stock has support around ₹430 per share, with the potential to reach ₹450 to ₹460 per share in the short term. They also anticipate that Wipro may become highly bullish once it surpasses its current resistance levels and maintains this position on a closing basis.