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Daily Voice | IT space may see a correction on Fed rate moves, says Ram Kalyan Medury of Jama Wealth

Apr 17, 2022 11:08 AM IST

We will see IPOs hitting the market and getting subscribed, but the success or otherwise of the next few IPOs will determine whether more IPOs will follow.

The IT space is simmering, with valuations far outstripping their long-term averages, yet they do not seem to be out of bounds. But, Ram Kalyan Medury, Founder and CEO of Jama Wealth, sees some corrections ahead with the Fed raising the policy rates at a rapid pace.

In an interview to Moneycontrol, Medury shares that the success of the upcoming public issues will determine the trend in the primary market. Excerpts from the interaction:

How do you approach IT stocks especially after earnings by IT majors? Do you see any impact of Fed rate trajectory on the IT space?

Technology has become the backbone of the global economy and the listed Indian IT majors have grown well. TCS, for instance, is among the top ten IT companies in the world and continues to shine bright with its continued, consistent broad-based mid to high teen YoY growth across verticals and geographies. Margins, deal wins all look good as of now but in the post-COVID talent wars employee costs have escalated.