The Indian IT sector has seen a decline of 30 per cent from its highs in the last few quarters. After the strong rally of the Kovid period, further gains have been seen in this fall. There is a slowdown in the demand for IT services for the time being, but from a long-term perspective, the demand for the IT sector remains strong.
In the next 2-3 quarters, there will be improvement in IT services and demand will be seen coming back to normal levels. If there is a slight further fall in the valuation of IT stocks, then largecap IT stocks will become more attractive. these things Anil Rego, Founder and Fund Manager, Right Horizons PMS said in a long conversation with Moneycontrol.
In this conversation, he further said that auto mobile is another such sector, about which investors’ expectations seem to be increasing. The auto sector has been one of the biggest gainers in the market for over 3.5 months now. With the cyclical demand picking up in all the categories of the auto sector, the entire sector is showing enthusiasm. He said that there will be strong demand in the auto sector going forward, due to which this growth of this sector will continue.
Talking on the Indian equity market, he further said that the volatility in the market is expected to remain stable in the next two quarters. Fear of recession and fear of weakening of demand will show their negative effect on the market.
Responding to a question related to Russia-Ukraine war, Anil Rego said that Indian companies will benefit from good relations between India and Russia. Russia’s invasion of Ukraine and the sanctions imposed on Russia after this invasion has limited Russia’s access to the global market. In such a situation, there are good opportunities for Indian companies to increase their penetration in Russia, but this will require both public and private investment.
Right now everything is looking good for real estate, know where the speed breakers are visible next
He further said that it takes at least a decade to set up an infrastructure. So, we will not see any big benefit from this in the medium term. He also said that Indian companies are already in a better position because of the China+ 1 strategy and the government’s policies to benefit sectors like manufacturing, textile, durable consumer goods.
Disclaimer: The views expressed on moneycontrol.com are the personal views of the experts. Website or management is not responsible for this. Money Control advises users to consult a certified expert before taking any investment decision.
(Disclaimer: Network 18 Media & Investment Ltd. is owned by Independent Media Trust. Its beneficiary company is Reliance Industries.)