High dividend payout driving rally in IT stocks; m-cap of top 5 up 87%

Since FY15, top 5 IT firms' share price has risen 116% against 132% increase in cash-pay out

India’s top IT companies have been among the top performers on the bourses in recent years. The share prices of the country’s top five IT companies have risen at a compound annual growth rate (CAGR) of 13.7 per cent in the last six years, ahead of the benchmark BSE Sensex, which rose at a CAGR of 10 per cent during the period.

The combined market capitalisation of the big five – Tata Consultancy Services, Infosys, Wipro, HCL Tech, and Tech Mahindra – is up nearly 87 per cent since March 2020, much higher than the 68 per cent rally in the