Q2 FY23 numbers for the IT sector will be good, says Motilal Oswal's Manish Sonthalia

Sonthalia further stated that IT industry valuations have been on the rise in the previous five years, but IT spending is not fully discretionary at the moment.

“As opposed to IT spend, which is generally discretionary, this time around, with the move to the cloud and other factors, it is not entirely discretionary. A chunk of IT investment, particularly conversion of legacy systems to digital, is becoming increasingly critical if any organisation is to survive and develop," he said.