Trending stocks: Top performing IT stocks in 2020

IT stocks seem to have certainly stolen the focus by reporting huge gains recently.

According to market experts, the outlook for IT stocks peaking during the second half of the year remains positive and with the second quarter seeing a better-than-expected performance, it is being hoped that the outlook of the entire year will also improve.

In the previous trading session, the stock of Infosys touched its fresh 52-week high of Rs 994 per share on BSE. The company also announced acquiring GuideVision, which is one of the largest ServiceNow Elite Partners in Europe. Such an acquisition, which is a type of capability enhancement rather than geographic growth, poses as a strong opportunity for revenue growth.

BSE IT index has zoomed by 23.23 per cent in a year thus, outperforming Sensex. Sensex fell by 5.05 per cent on a YTD basis whereas BSE IT index soared by 26.59 per cent on a YTD basis. The recent rally in small-caps and mid-caps pushed up IT index by 5.42 per cent in the last two trading sessions. While on the other hand, the index gained 10.18 per cent since the onset of September 2020.

With such a stellar performance seen in the IT stocks, investors as well as market analysts have mixed opinions on whether investing in IT stocks is a safe bet in the current situation or not.