Buy-on-dips and sectoral rotation thesis in India to continue: Sandeep Tandon

economictimes.indiatimes.com:

«If I have to look at the complacency in the US particularly, particularly in technology, if I have to talk about the Nasdaq 100 instead of looking at the composite or even some narrow indices, we are seeing early signs or not even early signs; we are seeing that the complacency indicator has actually started spiking,» says Sandeep Tandon, Quant Mutual Fund.

I know that your strategy, of course, is looking at sectors and stocks at those extreme inflection points. So, I am curious to understand your outlook when it comes to IT in particular. Do you believe that it has reached that inflection point? Would that be a contra call? What is the stance at the current juncture?
Sandeep Tandon: Yes, it has reached a neglected territory some time back. In fact, you asked me if it was in September 2023 itself when you saw an extreme sort of neglected phase and some capitulation happened. Something happened at the beginning of the year also when the majority of analysts downgraded by the end of the first quarter of 2023-24. But I will also agree that when you look at it from the earnings visibility point of view or the traction point of view in the business, it is still on the lower side.

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