Few of the IT sector stocks have fallen up by 29 per-cent in the year so far with the BSE IT index, a gauge of IT stocks on the BSE, sliding by 2.67 per-cent in the same period. The index, though, has surged by 5.11 per-cent in the post-Budget rally that the broader market witnessed in March.
Sectoral experts say the technological disruption in the space and a relative downturn in discretionary spend in sectors such as pharma & BFSI will lead to these stocks taking a backseat for some time in the market.
"There are issues not only in the BFSI industry. Along with that you also have consolidation issues in the healthcare sector, which means IT invest in those sectors will also take a backseat at least for now.
Upadhyay's Kotak Mutual Fund is underweight on the sector given the challenges it is facing. "In our overall portfolio stance, we have been underweight on the IT ," he also added.
Mr. Mahesh Patil, Co-CIO, Birla Sunlife MF echoed Upadhyay's view, saying, "Given all the backdrop, up coming year you might see slightly lower growth for the industry."
Sectoral experts say the technological disruption in the space and a relative downturn in discretionary spend in sectors such as pharma & BFSI will lead to these stocks taking a backseat for some time in the market.
"There are issues not only in the BFSI industry. Along with that you also have consolidation issues in the healthcare sector, which means IT invest in those sectors will also take a backseat at least for now.
Upadhyay's Kotak Mutual Fund is underweight on the sector given the challenges it is facing. "In our overall portfolio stance, we have been underweight on the IT ," he also added.
Mr. Mahesh Patil, Co-CIO, Birla Sunlife MF echoed Upadhyay's view, saying, "Given all the backdrop, up coming year you might see slightly lower growth for the industry."
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