Experts views: The results of TCS and weak global signals dominated the market. This was the second week where there was a decline for the second consecutive week on a weekly basis. After the weak results of TCS, the IT sector broke havoc on Friday. The Nifty IT index rolled around 2 percent. TCS joined the top losis of Wipro Nifty. The Indian business of TCS declined by 31% on a quarterly basis. On the other hand, UK business also remained sluggish. In such a situation, what is the opinion of market experts about the IT sector, let’s take a look.
CNBC-Awaaz managing editor Anuj Singhal Said that TCS is the largest IT company. This does not mean that the entire sector will be spoiled. Midcap IT may have good results. It is wrong to punish the entire sector due to TCS. In the next one week, IT can become a bottom.
Industry Expert Sunil Subramaniam Said that IT companies were avoiding spending due to fear in the US economy but if we look at the number of US Economy, they are coming well, that is why the fed is not talking about cuts in interest rates. Because the inflation is not decreasing as much but there is not much pressure in growth, such a situation has to change. AI’s impact is not only on the software company but also on manufacturing companies. Hence AI Drivon Consulting is a very big appearance.
The cause of the underperform of IT shares compared to the Nifty has been due to the softness of FII being soft. However, despite the high flow in the DII market, he did not shop in the IT sector. I think IT companies will improve in long term as this sector is a favorite of FII when they invest money in India. When the FII returns, IT companies will gain again. Hence my view is of by -on dip (purchasing in fall) in the IT sector.
Senior VP Gaurang Shah of Geojit Investment It is said that if there are some problems about the IT sector in today’s date, it does not mean that it will continue even further. I believe that the IT sector will be seen doing well in the market in the long term. Hence, investments can be invested in small IT companies.
Arun Malhotra, Founder and Cio of Capgro Capital Advisors Says that earning growth will see better in the second quarter than the first quarter. In the banking sector, there has been a slowdown in loan growth somewhere and the cut in CRR will be seen to benefit in the second half, due to which the NIM compression may appear.
The volatility coming in the market due to global uncertainty will also be completely over in second half. In such a situation, the hope is that the market will be seen doing good in the festive season. He further said that in such a situation, investors should focus on companies giving growth of 17-18 percent.
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