HSBC Global expects IT sector margins to remain under pressure
Tushar Pradhan, CIO of HSBC Global Asset Management (India) discusses with CNBC-TV18 on IT sector outlook. He said on Wednesday that midcap IT ran ahead of themselves as valuations breached large-cap IT valuations, adding that margins have been suspect because of the rising costs, but that will plateau out at some point in time.
Tushar Pradhan, CIO of HSBC Global Asset Management (India) said on Wednesday that midcap IT ran ahead of themselves as valuations breached large-cap IT valuations, adding that margins have been suspect because of the rising costs, but that will plateau out at some point of time.
“We have seen midcap IT actually go ahead of large-cap IT by multiples, in the last few months. There will be a period of self-correction there and markets generally tend to self-correct,” he told CNBC-TV18.
The midcap story is more to do with individual companies and individual growth factors and within the pack, one should look for significant strong growth trends, which are unique to any one company, Pradhan added.
While talking about the Indian equity market, Pradhan said that the economy is showing signs of green shoots. He further added that India is relatively more insulated versus global markets.
“The current move is a combination of factors. One, we have seen a significant outflow of money from the foreign portfolio investments (FPIs) but a quarter to date, we are seeing almost upwards of $8 billion, which have come in just in a matter of three months,” he said.
For more details, watch the accompanying video
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM
Wine shops and bars to remain shut for 4 days in Mumbai in 4 weeks, check details
May 15, 2024 7:52 PM
INDIA bloc will win majority seats in Bihar, says Tejashwi Yadav
May 15, 2024 4:20 PM