Majority of the IT players have missed the consensus growth expectations and the margin outlook has been moderate. BSE IT index is down by 8 per cent in the current year so far.
According to the market experts, the IT sector is facing multiple headwinds at macro and micro level including slowdown in the economic growth, along with the revenue and margin pressure of the companies.
Arun Malhotra, Founding Partner & Portfolio Manager, CapGrow Capital Advisors said that it was a little late in the cycle for a sectoral downgrade.
“IT sector growth drivers like cloud, digitization, AI, and machine learning are structural in nature,” he added. “Short-term swings in stock prices of IT stocks may be a good opportunity to add stocks like
, and .”
Others said that markets are likely to…