Motilal Oswal Financial Services has increased its weightage in the real estate sector to nearly 4% from 1%. "Although we hold a positive outlook (on the real estate sector), we are well aware that valuations are high, and companies must meet execution targets. Failing to deliver, considering the current valuations, can have significant repercussions," said Gautam Duggad, Head of Research and Institutional Equities at Motilal Oswal Financial Services.
The brokerage firm anticipates a lacklustre performance in the IT sector for the third quarter of the financial year 2024. Duggad pointed out that there are more furloughs this time, and the commentary from IT companies has not been very comforting. So, the expectations are muted. "Statistically, this is the first quarter after 26 quarters where we are expecting a YoY decline in IT earnings," added Duggad.
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Duggad noted that the midcap IT space has witnessed better demand despite the overall subdued expectations for the industry.
Duggad currently holds an equal-weight position on autos. However, he anticipates a clear positive shift towards two-wheelers in the near future.
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(Edited by : Shweta Mungre)
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