We recently published a list of the 10 Best Indian Stocks to Buy According to Billionaires. In this article, we will take a look at where Infosys Limited (NYSE:INFY) stands against other best Indian stocks.
India’s stock market had a rough ride during the second half of FY25, amid uncertainty around US tariffs, weak earnings, and persistent foreign outflows. Analysts expect the volatility to extend into the new financial year, especially after the Trump administration unveiled fresh tariffs on April 2.
READ ALSO: 10 Best European Stocks To Buy According to Billionaires and 20 Stocks Insiders Bought in April After Trump’s Tariff Rollout.
In recent years, millions of Indian investors have piled into stocks, hoping to build wealth by betting on their country’s strong economic growth. Social media has been buzzing with ‘finfluencers’ offering financial advice and trends. Easy-to-open online brokerage accounts and stock funds have also wooed the population, especially youngsters and retirees, into investing.
Several notable billionaires have also made significant investments in Indian stocks, reflecting the market’s growing appeal. As of November 2024, Rajiv Jain’s GQG Partners was the fourth-largest shareholder in Gautam Adani’s firm. Late last year, billionaire Azim Premji’s private equity firm also acquired a 1.6% stake in a leading Indian technology services and consulting company.
Last Monday, many investors were dealt a blow as the stock market lost $170 billion, with two of the country’s most prominent indexes plummeting from fears that Trump’s new tariffs would ignite a global recession. Foreign institutional investors sold shares valued at $1.05 billion during the day, the highest outflow since February 28. The market fell again on Wednesday, as the 27% tariff on Indian exports to the US took effect.
Here is what Nilesh Shah, managing director at Kotak Mahindra Asset Management, was quoted by Reuters as saying about the situation:
“Indian markets are unable to quantify the uncertainty unleashed by the tariff war. The unfolding events will likely keep sellers on an aggressive sell mode and buyers on a reluctant buy mode.”
On April 9, the Reserve Bank of India cut the interest rate by 0.25% and reduced its growth forecast for this year from 6.7% to 6.5%. Sanjay Malhotra, the governor of the central, stated the following in a speech:
“The recent trade tariff-related measures have exacerbated uncertainties, clouding the economic outlook across regions, posing new headwinds for global growth and inflation.”
While multiple brokerage firms expect the tariffs to hurt India’s GDP growth for FY26, government officials in Delhi, who spoke on the condition of anonymity to a media outlet, expect the country to meet the 6.3%-6.8% growth projection if oil prices stay below $70 per barrel. A finance ministry official said they had already made provisions in the budget for duty remission schemes to help exporters.
A programmer typing on a laptop, highlighting the cutting edge software engineering solutions provided by the company.
Methodology
For this article, we scanned Insider Monkey’s Q4 2024 proprietary database of billionaires’ stock holdings and identified Indian stocks from the list. From there, we picked the top 10 stocks with the highest number of billionaires having a stake in them. Where two or more stocks were tied on billionaire sentiment, we used the dollar value of billionaire holdings as a tiebreaker between them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Infosys Limited (NYSE:INFY)
Number of Billionaires: 10
Billionaire Holdings: $875,164,416
Infosys Limited (NYSE:INFY) provides digital services and consulting to clients in more than 50 countries, enabling them to navigate their digital transformation through cloud and artificial intelligence. With 10 billionaires holding a stake in the company, it is one of the best Indian stocks to buy.
The company recently extended its 10-year-long strategic partnership with AIB by taking on a renewed and enhanced role to support the financial services group as it accelerates its transformation initiatives. Under the collaboration, Infosys Limited (NYSE:INFY) will deliver application development and maintenance services, which will help in enhancing AIB’s operational efficiency.
Earlier this month, Infosys Limited (NYSE:INFY) and Formula E announced the launch of an AI-powered stats center to boost fan engagement. The stats center will leverage Infosys Topaz, which uses GenAI technologies, to deliver data-driven insights and interactive and immersive experiences.
On March 31, Infosys Limited (NYSE:INFY) and Linux Foundation announced a collaboration to advance responsible artificial intelligence principles across global networks. The partnership is a testament to the company’s commitment to fostering responsible use of AI on a global scale.
According to Insider Monkey’s database for Q4 2024, 27 hedge funds held a stake in the company, up from 26 at the end of the third quarter. Moreover, 10 billionaires have investments in Infosys Limited (NYSE:INFY), with combined holdings of over $875 million.
Overall, INFY ranks 2nd among the 10 best Indian stocks to buy according to billionaires. While we acknowledge the potential of INFY, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than INFY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.