December 22, 2023 / 11:56 AM IST
Sensex Today | Dipan Mehta, Portfolio Manager, Founder Director of Elixir Capital:
I foresee outperformance in large-cap IT stocks after a prolonged period of underperformance, particularly due to a stabilizing US economy. The elimination of concerns regarding a hard landing in the US economy is instilling confidence among companies, potentially boosting discretionary spending in IT and overall technology investments.
Consequently, Indian IT firms are poised to benefit from this shift, likely surprising on the upside in their deliveries within a quarter or two. Notably, large-cap IT companies, including Accenture, secured significant multiyear contracts in the past year, albeit facing delays in implementation due to slowed discretionary projects. However, a resurgence in economic confidence could fast-track these initiatives, leading to improved performances by Indian IT firms. Lastly, the advent of Generative AI presents a substantial opportunity for software companies, akin to significant technological waves such as Y2K or remote management application development, albeit its magnitude is yet to be determined.
