No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Sunday, October 5, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

IT sector recovery: IT sector slowly showing signs of bottoming out: Capitalmind’s Sidhanth Paul

by TheAdviserMagazine
1 month ago
in Business
Reading Time: 3 mins read
A A
IT sector recovery: IT sector slowly showing signs of bottoming out: Capitalmind’s Sidhanth Paul
Share on FacebookShare on TwitterShare on LInkedIn


After a prolonged downturn, the Indian IT sector may be finding its floor, says Sidhanth Paul, Research Analyst – Capitalmind. Valuations have already priced in pessimism, but mid-tier players are carving niches in AI and automation. As revenues from these segments grow, the sector could be primed for a rerating, he said in an interview.

Edited excerpts:

How do you see the Indian equity markets shaping up over the next 12–18 months?Markets, in the near term, are driven as much by liquidity and sentiment as by fundamentals. In that sense, the market seems to be in a ‘prove it’ mode, companies need to back up the expectations built into their stock prices. If they do, we could see a more sustainable upside. If not, corrections would be healthy and probably necessary.

Many investors found the Q1 earnings season below expectations as signs of broad-based growth was missing. Do you think earnings recovery will come in Q2 or Q3 onwards?Q1 earnings did leave many investors a bit underwhelmed, largely because we didn’t see broad-based growth. Strength was limited to a few pockets. So while we’re certainly hopeful of recovery in the coming quarters, it may not be a uniform rebound. Q2 could still be patchy, but Q3 onwards we should get a clearer picture of whether earnings growth is broadening out or still narrow. We expect, this cycle will likely be more sector-specific rather than a blanket recovery across the board.

Live Events

Which sectors do you believe will lead the next leg of market growth, and what’s driving your conviction in them?Power utilities, manufacturing and consumption are some of the sectors we are looking at and have been for some time now.In power utilities, the structural demand story is intact, supported by push for renewables, transmission upgrades, and higher power offtake across states. We’ve already seen strong numbers from players in this space, and visibility looks strong. However, the valuations are stretched and better to wait for a correction to add them in the portfolio.Manufacturing is another key theme, driven by government incentives under PLI schemes, import substitution, and global diversification. Order books in industrials and capital goods remain healthy, giving us confidence.On the consumption side, while rural demand has been patchy, government measures such as tax reforms, higher exemption thresholds, and GST rationalization should begin to reflect in volumes over the next few quarters.

Are there any valuation trends or signals in the current market that investors should be mindful of?Valuations have been an active discussion for well over a year now, and we’ve also seen meaningful corrections in certain pockets. Stock prices have built in significant expectations and companies now need to deliver strong earnings growth to justify those multiples.

Quality businesses with strong balance sheets and visible growth drivers continue to command premiums, but we are also noticing greater investor sensitivity to even the slightest earnings misses.

If you had Rs 10 lakh to invest in the market right now, how would you spread it across gold/silver, equities and debt?There’s really no one-size-fits-all answer here. Asset allocation always has to reflect an investor’s financial goals, time horizon, and risk appetite. That said, what we can say with certainty is that a diversified portfolio is essential.

Equities remain the long-term growth driver, but pairing them with debt provides stability and cash flow, while gold has historically acted as a hedge against uncertainty and inflation.

Lastly, what’s the one contrarian idea you’d back for the next 12 months?Too early to say, but IT sector is slowly showing signs of bottoming out. The valuations have already priced in a lot of pessimism. What’s interesting now is the mid-tier IT companies, who are trying to carve out niches in areas like AI services and automation.

While AI-related revenues aren’t yet material, once these start contributing meaningfully, the market will notice, and the rerating could happen.



Source link

Tags: bottomingCapitalmindsPaulRecoverysectorShowingSidhanthsignsslowly
ShareTweetShare
Previous Post

Another Study Ties This Vaccine to a Lower Dementia Risk

Next Post

Lessons From T&I Summit APAC’s Forrester Women’s Leadership Program

Related Posts

edit post
Larry Summers praises Ford CEO Jim Farley’s concept of the essential economy because it doesn’t ‘fetishize manufacturing’

Larry Summers praises Ford CEO Jim Farley’s concept of the essential economy because it doesn’t ‘fetishize manufacturing’

by TheAdviserMagazine
October 5, 2025
0

Former Treasury Secretary Larry Summers said Ford CEO Jim Farley’s idea of the “essential economy” is a good concept as...

edit post
I went to a day trading meetup and spoke to people with dreams of getting good enough to quit their 9-to-5

I went to a day trading meetup and spoke to people with dreams of getting good enough to quit their 9-to-5

by TheAdviserMagazine
October 5, 2025
0

The day trader persona on social media looks something like this: A man with a sporty vibe and the swagger...

edit post
Layoffs will start if shutdown talks ‘going nowhere’, says White House

Layoffs will start if shutdown talks ‘going nowhere’, says White House

by TheAdviserMagazine
October 5, 2025
0

WASHINGTON: The Trump administration will start mass layoffs of federal workers if President Donald Trump decides negotiations with congressional Democrats...

edit post
Gazans long for end to war, Rubio says not yet

Gazans long for end to war, Rubio says not yet

by TheAdviserMagazine
October 5, 2025
0

U.S. Secretary of State Marco Rubio said on Sunday that war in Gaza has not yet ended despite Israel and...

edit post
Kalshi now sees government shutdown lasting nearly 21 days, second-longest in U.S. history

Kalshi now sees government shutdown lasting nearly 21 days, second-longest in U.S. history

by TheAdviserMagazine
October 5, 2025
0

Oct. 05, 2025 10:01 AM ETS&P 500 Index (SP500), SH, SPY, VOO, IVV, SDS, RSP, SSO, UPRO, SPXUBy: Anuron Mitra,...

edit post
Denmark revives interest in Israeli air defense system

Denmark revives interest in Israeli air defense system

by TheAdviserMagazine
October 5, 2025
0

Drone incursions at Danish airports have again put IAI's Barak MX system on the Danish Ministry of Defense's radar. ...

Next Post
edit post
Lessons From T&I Summit APAC’s Forrester Women’s Leadership Program

Lessons From T&I Summit APAC’s Forrester Women’s Leadership Program

edit post
Fujitsu develops AI agent platform for healthcare sector (FJTSF:Pink Limited Info)

Fujitsu develops AI agent platform for healthcare sector (FJTSF:Pink Limited Info)

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Tips to Apply for Mental Health SSDI Without Therapy

Tips to Apply for Mental Health SSDI Without Therapy

September 19, 2025
edit post
Gazans long for end to war, Rubio says not yet

Gazans long for end to war, Rubio says not yet

0
edit post
Why an analyst downgrade of Wells Fargo does not change our conviction in the stock

Why an analyst downgrade of Wells Fargo does not change our conviction in the stock

0
edit post
Championing Teachers in High-Conflict Contexts

Championing Teachers in High-Conflict Contexts

0
edit post
Larry Summers praises Ford CEO Jim Farley’s concept of the essential economy because it doesn’t ‘fetishize manufacturing’

Larry Summers praises Ford CEO Jim Farley’s concept of the essential economy because it doesn’t ‘fetishize manufacturing’

0
edit post
Vitamins vs. Technocracy: Lessons from MK-7

Vitamins vs. Technocracy: Lessons from MK-7

0
edit post
M crypto shorts liquidated in the past hour

$80M crypto shorts liquidated in the past hour

0
edit post
Larry Summers praises Ford CEO Jim Farley’s concept of the essential economy because it doesn’t ‘fetishize manufacturing’

Larry Summers praises Ford CEO Jim Farley’s concept of the essential economy because it doesn’t ‘fetishize manufacturing’

October 5, 2025
edit post
When Privacy Becomes a Caregiver Issue: What Boomers Need to Know Now

When Privacy Becomes a Caregiver Issue: What Boomers Need to Know Now

October 5, 2025
edit post
I went to a day trading meetup and spoke to people with dreams of getting good enough to quit their 9-to-5

I went to a day trading meetup and spoke to people with dreams of getting good enough to quit their 9-to-5

October 5, 2025
edit post
OpenAI and Jony Ive may be struggling to figure out their AI device

OpenAI and Jony Ive may be struggling to figure out their AI device

October 5, 2025
edit post
Layoffs will start if shutdown talks ‘going nowhere’, says White House

Layoffs will start if shutdown talks ‘going nowhere’, says White House

October 5, 2025
edit post
FTX Issues Warning As Fraudulent Emails Circulate During .6B Creditor Payout

FTX Issues Warning As Fraudulent Emails Circulate During $1.6B Creditor Payout

October 5, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Larry Summers praises Ford CEO Jim Farley’s concept of the essential economy because it doesn’t ‘fetishize manufacturing’
  • When Privacy Becomes a Caregiver Issue: What Boomers Need to Know Now
  • I went to a day trading meetup and spoke to people with dreams of getting good enough to quit their 9-to-5
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.