Aditya Birla Sun Life AMC is bullish on IT stocks, expects 8-10% growth in the sector

Mahesh Patil, the Chief Investment Officer (CIO) at Aditya Birla Sun Life AMC on Friday, January 19, expressed a positive outlook on the Information Technology (IT) sector. Patil conveyed the company's readiness to consider adding IT stocks during market declines.

His's optimism extends to projecting an 8-10% growth in the IT sector, with the possibility of a return to double-digit growth over the next two to three years.

Turning the spotlight to the hospitality and travel industry, Patil highlighted a noteworthy supply-demand imbalance, predicting favorable conditions for sector profitability.

He noted a scarcity of new supply in the hotel space.

The CIO pointed out that the average revenue per room (ARR) in the hotel sector is currently at a higher level.

On the banking sector, Patil acknowledged pressure on the deposit side due to tight liquidity conditions.

Patil suggested that banks might need to increase deposit rates to address this imbalance, but he maintained an overall positive outlook for the sector.

Commenting on the upcoming Union Budget, Patil stated that there are not many expectations from market perspective. However, he emphasised the need for clarity on the indexation benefit, especially for long-term investors entering the bond market through mutual funds.

Patil highlighted that providing clarity in this area could reignite flows into the mutual fund industry, particularly in the fixed-income space, contributing to the development of the bond market and enhanced liquidity.