Page 7 - It Sector News Today

Companies have realised that they are sitting on excess staff with skills that are no longer growth drivers

Rohit Srivastava of Strike Money Analytics & Indiacharts highlights the risk posed by the high positioning in the market. He expects a prolonged corrective phase and warns against being bullish on IT stocks, which still face headwinds. The Rs 50,000-crore positioning that we see is a risk to the market itself.

In a recent note, brokerage house Ambit Capital noted that the March quarter (Q4) outlook doesn’t suggest immediate recovery for IT. It prefers Tier-1 IT over Tier-2 IT.

Karnataka, of all states, must acknowledge the benefits it has reaped from constitutionally-guaranteed freedom of movement and emphasis on meritocracy. The state boasts a thriving IT sector and significant PSUs, especially in defence, and serves as a hub for higher education. These successes have been possible because Karnataka has attracted the best talent from across India and the world, thanks to its cosmopolitan and open approach critical for innovation and growth.

These offshore arms of multinationals are collaborating to leverage the domain expertise, services and technology portfolio of Indian IT companies that has been built over the years, said the company’s head of India business and corporate affairs.

Caretaker minister unveils roadmap, initiatives to drive innovation and economic growth

Axis believes that the said recovery will begin at the start of the new year and FY25 will show strong revenue growth. The brokerage has picked Coforge, Persistent Systems, and KPIT Technologies as its top IT sector picks post the December quarter (Q3FY24) results.

IT Sector: As per a Nasscom survey, sentiments are expected to improve in the second half of FY25, with over two-thirds of the tech CEOs expecting better revenue growth in the next fiscal year.

Sumit Agrawal, Fund Manager at Bandhan AMC, discusses the changes in exposure in various sectors. They have reduced exposure to large private sector banks and moderated exposure in the IT sector. They continue to be overweight in the auto sector, especially two wheelers and two wheelers related OEMs. They are also overweight in the pharma sector, particularly domestic pharma.

Meta announced several rounds of layoffs as part of Mark Zuckerberg's "year of efficiency" in which thousands of employees lost their jobs in the past few months.