Expect strong earnings to continue for IT companies, says DSP Investment

“IT sector has moved up the valuation curve, they are trading at the higher end of the curve but at the same time on a relative scale they still seem to be reasonable.”

The recovery is still taking place in the fundamentals of the market, Sambre said.

“In the cement sector, we see more of a linear trend and hence our longer-term view tends to remain positive. Metals are more cyclical and we have to observe many more factors before we take a long-term call out there,” he said.

On specialty chemicals space, Sambre said, “Fundamentally what we observed is that the scenario is incrementally becoming better for the sector and some of the recent developments which is the trade shifting from China or these companies putting up large CAPEX which displays that they have a good business outlook for the coming future. All of those trends give us the view that the sector dynamics are going to remain strong and which is why we keep holding these names.”