Valuation of IT stocks is now close to pre-pandemic levels, but investors have to be selective as recovery could be protracted
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PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Highlights IT stocks are highly correlated to movement in US indices Fed turning increasingly hawkish Accenture sounds reassuring; mixed signals otherwise with several sectors giving recession warnings Tech spending may slow down for few quarters, long-term trend intact IT stocks have corrected significantly, close to pre-pandemic valuation Be very selective on large-caps, recovery may be protracted Nimble footed mid-caps better placed, add very gradually The overriding sentiment in the global equity market is of fear in the face of the continued hawkish stance by global central banks…
