Too early to write death messages for Indian IT companies, says Gurmeet Chadha, Slams -Analists

Indian IT shares can fall in the midst of the current headwind, but they are the backbone of the domestic economy, which generate millions of jobs, foreign exchange reserves while building a technical ecosystem, Gurmeet Chadha, Managing Partner & CIO at complete Circle Consultants, said analysts in his views “. -Shares must analyze, sell or cut and abandon “abuse”.

He said it was too early to write their death messages.

As a disclaimer, Chadha clarified that he remains “coarse underweight” in the IT sector and has no established interests.

“I see that some analysts and investors are abusing TCs, infy and it cos … it has been the backbone of the economy, generating millions of jobs, forex reserves and building technical ecosystem and cities such as Bengaluru, Hyderabad.

As the profit season on Thursday starts, with IT Bellwether Tata Consultancy Services (TCS) that explains its Q2 results, the shares are strong buzz. In the past week it has reduced shares of up to 11%. The TOP Gainer is Oracle Financial Services Software (OFSs) with medium shares of persistent systems, MPhasis and Coforge, with 9%, 6%and 6%respectively.

Also read more: after income tax and GST -Tweaks, Gurmeet Chadha Bats for the next large push – LTCG Cuttcs has won 3%, while Infosys has risen 1.2%. Nifty has risen 3%at index level. Mid-Tier IT service companies are expected to stimulate the growth of the sector in Q2FY26, a quarter that is marred by macro-economic headwind and price pressure that cursed the general industry income, because customers remained desirable for large or discretionary projects.

Estimates of two leading domestic brokers suggest that these companies can report a sequential revenue growth of a constant currency ranging from -0.5% to 6%.

Read more: Q2 Preview: Coforge set to lead IT income as medium companies largely surpasses; 8 shares to buy

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)