Don’t quarantine the stock markets! Instead, there is a little corner in the market where you could now choose to build a massive fortune in the next couple of years. Investors are looking for stocks which will bounce back quickly after this rout in the stock market gets completed. An obvious place to go looking and buying selectively is in the big IT companies. Coming into 2020, these companies were delivering stellar results and making huge gains for investors—domestic and foreign. The coronavirus outbreak has changed everything around the world starting from the way businesses are run. India’s big IT companies are struggling to piece together the work from home solution scenario and other continuity plans after the government imposed a strict lockdown in the country to stem the spread of the deadly SARS Cov 2 epidemic. There are many quality companies even in this quarantine which investors can look at like TCS. These big IT companies like TCS are using these unforeseen circumstances to become a potential catalyst to help companies around the globe recover quickly. The coronavirus outbreak has caught countries around the world napping, with medical systems not adequately prepared to fight this pandemic.
Therefore, to make medical systems more efficient, big IT companies like TCS can provide their technologically skills to upgrade systems. TCS is currently as of date the most valuable Indian company by way of market capitalisation at being valued at around Rs 6.82 lakh crore. It is a global IT services consulting and business solutions company partnering with the world’s leading businesses in their transforming journey. Digital adoption is progressing swiftly at a CAGR of around 40% during the last four years, wherein the ticket sizes are going up and early adopters are also taking up core transformation programmes. The TCS stock has always been a steady performer in the Indian stock markets where it has always hovered around the Rs 2,200 levels for most part of 2019. The recent pandemic onslaught has brought the indices to historic lows and leaving no exception, blue chip companies like TCS have also borne the brunt of seeing the stock touch Rs 1,500 levels. Since then, the TCS stock has recovered by 20% to touch the Rs 1,800 levels on the back of value buying by portfolio investors and mutual fund managers. There will definitely be many corrections in the stock market during the next few months with extreme bouts of volatility, but investors can accumulate the TCS stock in small quantities on a regular basis for long term portfolio gains. One cannot prevent market panics, but one can control the way to react. Dangers are lurking in the stock markets, but these slumps are a chance to buy good quality companies like TCS for building a superior portfolio.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.