The combination of factors such as passage of Goods and Services Tax, implementation of Seventh Pay Commission, besides a good monsoon and the central bank cutting rates is likely to trigger earnings recovery for companies going ahead, according to Gautam Trivedi, Managing Director and Chief Executive of Religare Capital Markets.
Telcos will have to invest in data spectrum and data networks, thus wanting capital release from asset sales, says Rumit Dugar, director-India TMT Research, Religare Capital Markets. He also says, at the margin it will reduce stress on the balancesheets of the companies.
Rumit Dugar is bullish on IT sector as rupee depreciation has been beneficial and broader macro environment especially in the developed market is looking better. He bets on largecaps like Infosys, TCS and Tech Mahindra.
Rumit Dugar, IT Analyst of Religare says that TCS has shown excellent execution. "We have raised target price to Rs 1,800," he adds.
IT analyst Rumit Dugar said that one can look to play TCS, Infosys, Tech Mahindra using a three-pronged strategy.