According to Manish Bhandari, founder, CEO and portfolio manager at Vallum Capital, artificial intelligence (AI) has already become a meaningful revenue stream for leading IT companies, deal flow remains steady, and the rupee trading near 96 is supporting margins.
He believes the recent rally is more than just a technical rebound. “It is not too early; we see this as a period to build gradually,” he said in an interview with Moneycontrol.
Bhandari believes that as growth accelerates, concerns about job losses in the IT sector will gradually fade.
“The last quarter was the first signal, with hiring picking up after a long pause. Early results have also shown deal flow from European automakers. A few more positive developments are needed to trigger a tactical return to IT stocks,” Bhandari said.
Is the IT rally just a technical rebound, and is it too early to buy?