The information technology sector can start seeing a slow but definite recovery from the first quarter of the current financial year, according to Sudip Bandyopadhyay of Inditrade Capital Ltd.
"I think we have seen the worst. This is reasonably certain that the worst probably is getting over or is already over," the group chairperson told NDTV Profit on Wednesday.
He underscored that despite the market being sceptical about rate cuts by the US Federal Reserve, Chair Jerome Powell continued to have a positive outlook.
Most of the companies in the IT space are looking positive, according to Osho Krishan, senior research analyst at Angel One Ltd. He is bullish on Coforge Ltd., saying that the company is now out of its corrective phase and would see an upward move.
The IT sector saw a major gain on Wednesday. The other sector that saw a gain of 1.78% was the Nifty PSU Bank. Krishan said the public sector banks are going very strong and expects them to outperform the Nifty index.
The benchmark stock indices ended little changed amid volatility on Wednesday, ahead of the Fed chair's speech at the Macroeconomics and Monetary Policy Conference.
Bandyopadhyay is cautious of shipping companies, pointing out that the multiple orders that they have been getting would take five to six years to complete.
He underscored that valuation was the only reason for the caution, as the stocks have risen over 10% in the past few days. For those who already have the stock, he suggested that one must be watchful and keep updating the stop loss.
On metals, Krishan said the sector had been under consolidation and in the coming two to three weeks, there could be strong movement in the overall space.
The easing of US interest rates and increase in private capital expenditure will help the metals sector grow, according to Bandyopadhyay.
On the larger markets, Bandyopadhyay said corporate earnings, elections and the monsoon would drive the markets in the future, apart from the changes in US interest rates.
Krishan said the reason for the upward trend was the optimism around the market. However, he said, people would buy on dip and "be fussy with stock selection."
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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