"The IT sector will benefit from digitization and artificial intelligence in the long run. There is optimism about the retail segment of the NBFC sector, and resolution in wholesale NBFCs is crucial for the revival of the cycle. Interest rates globally are likely to peak out by mid next year, which could benefit long duration stocks. "
“From an asset allocation perspective, a slightly longer-term answer to your question is yes, inflation is likely to be stickier and hence, while rates might have peaked, coming down might take some time. The asset allocation needs to be thought about in that context.”
“Fundamentally India remains a very attractive market and we will see these bouts of selling and buying by FIIs but if I were to stick my neck out and say that how do we see direction of capital over a longer period of time, I think we will see steady FII inflows.”
"We need to monitor the IT sector todecide as to when we want to buy into it. Right now, I do not think it is the time to buy into this sector. We could see that next quarter when these companies talk about their guidance, there could be further cuts."
The soft outlook on IT is being compensated by pharma exports, says Vinod Karki, ICICI Securities equity strategist. He adds that while the Indian IT services sector doesn t have any structural issues, resetting itself is painful, with short-term uncertainty. However, the investment cycle aided by real estate and manufacturing cycles give confidence that future demand will be sustained, meaning the earnings downgrade cycle will not be there.