Bhasin advises caution in markets due to potential US data impact and advises profit-taking. Ranks private banks and emphasizes PSU stocks for performance. Prefers BHEL, Ircon, LTIM, HCL Tech, and Wipro for investment. Bhasin says: "The faint-hearted or the larger-term retail should keep their SIPs going but take some money off the table whenever there is leverage."
Gautam Duggad, Head of Research at Motilal Oswal, discusses the performance and outlook of the midcap IT sector, the growth and normalization trends in the auto sector, and the challenges and expectations in the IT sector. The investment strategy focuses on large cap IT stocks like HCL Tech. In auto, the best performing segment will be two wheeler in so far as volumes are concerned.
Vinit Sambre believes that the IT sector is a decent sector to be in due to cash flow generation, dividend payouts, and long-term growth opportunities. He emphasizes the importance of traditional IT companies embracing the generative AI space, which is expected to grow. Sambre acknowledges the interest rates globally and the potential impact on the economy, which is driving investors to look ahead. In terms of IT investment, Sambre remains equal to underweight but highlights the positive business momentum, especially for traditional companies.
Even as the Nifty IT index has marginally underperformed the broader Nifty50 on three, six and 12-month basis, the midcap and smallcap IT stocks have outrun all indices, Nuvama said, adding that some quality tier-2 IT firms delivered "eye-popping returns".
Ashutosh Sharma of Forrester Research India says he doesn t anticipate a positive shift in the demand environment until at least Q2FY25, given the uncertainty that has crept in across global markets