Comparative Analysis of Market Risk and Returns of Selected IT Companies in India

Abstract

The Indian stock market plays a vital role in mobilizing savings, promoting industrial growth, and strengthening the economic development of the country. The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are the two major stock exchanges in India that facilitate securities trading and investment activities. Among various sectors, the Information Technology (IT) sector has emerged as one of the fastest-growing sectors due to rapid technological advancement, digital transformation, cloud computing, and Artificial Intelligence (AI).
The present study attempts to analyze and compare the risk and return performance of selected IT companies listed on BSE and NSE during the period 2020–2026. The study is based on secondary data collected from BSE, NSE, company annual reports, and financial websites. Statistical tools such as Total Returns, Mean, Standard Deviation, Beta, Correlation, Covariance, and Sharpe Ratio were used for analysis and interpretation.
The findings of the study revealed that BSE-listed IT companies generated comparatively higher returns with greater volatility and market risk, whereas NSE-listed companies demonstrated stable and consistent returns with comparatively lower risk. The study also identified that Artificial Intelligence (AI), digital transformation, automation, and global economic uncertainty significantly influenced the Indian IT sector during 2025 - 26. The analysis helps investors understand market behaviour, evaluate investment opportunities, and make effective portfolio decisions according to their risk appetite.