Ex of AI, EV, tech space going to slow down for next 2-3 quarters: Sandip Sabharwal

economictimes.indiatimes.com:

Sandip Sabharwal, asksandipsabharwal.com, says “the longer-term outlook is still positive for equities. The broader universe is not doing badly. Some of the stocks are at 52-week highs, some are rallying.

It is not that the overall market is doing badly. It is just that where there is FII concentration, we are seeing some selling because there are outflows, which could continue for a few more days.”The Street seems pretty divided on whether or not to start buying IT at all. What is your view?The technology sector is a very diverse universe these days.

There are some companies which are specific to particular sets of industries. They might do well catering to defence or some companies into say, the travel industry or some companies doing work on AI, EVs, et cetera. Ex of that, for the broader technology space, things will still be tough.

So, for the larger companies which have a much more diversified client base and business, it is going to be tough because the business is still slowing. I do not know why these companies are doing these sporadic deal announcements. I think it is more to create some positivity around them.

But otherwise, directionally, in the results that just came out and the overall trend which we are likely to see over the next two, three quarters, things are still going to slow down.Where will the market get its next set of triggers from? Given that earnings are now behind us, that seems to be well digested. As RBI sounded wary about rising inflation, is that going to act as a trigger?The weakness in the market has nothing to do with what RBI has done or ICRR. The real thing is what is happening globally.

We have seen global markets starting to weaken. We have seen what is happening in China. We have