Moneycontrol
Last Updated : Jan 25, 2018 10:06 AM IST | Source: CNBC-TV18

2018 will be the year of micro improvement in corporate India; IT stocks to do well

On the sectoral front, Khamani sees strong growth in the IT industry. He further added that IT industry has already started guiding for growth largely from a developed market. Most of the large corporates that we are meeting suggest that environment is improving.

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Indian market put up a strong show in the year 2017, a trend which is likely to continue in near future. But, more specifically for the year 2018, there could be a lot of micro improvement in corporate India and economy, Vikas Khemani, President & CEO, Edelweiss Securities said in an interview with CNBC-TV18.

“I am very bullish on the India story. The earnings recovery should happen to start this quarter and in the next 4-6 quarters we should see a robust earnings growth. We are seeing early signs of a pick up in capital expenditure,” he said.

This year, we could see a lot of micro improvement happening in corporate India and in the India economy. This gives me the faith that we have still long runaway ahead of us, said Khemani.

Apart from few macro challenges such as a rise in oil, interest rates likely to go up but the current setup still favours upside.

On the sectoral front, Khamani sees strong growth in the IT industry. He further added that IT industry has already started guiding for growth largely from a developed market. Most of the large corporates that we are meeting suggest that environment is improving.

IT is also a natural hedge against weakness in emerging market currencies. The IT pack will remain in focus supported by three main factors – fundamental looks strong, it remains a natural hedge, and valuations.

IT stocks were trading cheaper in the past because growth was missing, and now that growth is returning, I believe most analysts want to come to Equal Weight because most brokerage houses are under own on IT.
First Published on Jan 24, 2018 03:43 pm
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