Is the worst over for IT stocks? Sudip Bandyopadhyay answers

economictimes.indiatimes.com:

«General outsourcing, and general contracting work is under pressure and that will remain under pressure. Amongst the biggies, we have seen some of the companies have started winning big orders now from different geographies. And probably we are seeing the beginning of the recovery phase as far as earnings are concerned for many of the large IT companies,» Sudip Bandyopadhyay of Inditrade Capital told ET NOW.

Edited excerpts:We have seen a lot of block deals of late and quite a few IPOs have also seen huge amounts of subscriptions. Is that showing you any kind of red flag? Are these signs of exuberance and should smart investors actually look at checking out?Not really. What is happening is that there is more liquidity in the market and people are willing to put their money to work.

I do not think we should read too much into it. It actually is the other way around. It shows that there is enough liquidity to absorb these large blocks which is actually a very healthy trend.

In most cases, we are seeing the share price going up after the block deals are happening. So that is a fantastic trend. There is absolutely nothing to worry about or read too much into that.

Yes, of course, we have to worry about what the US Fed says. We have to worry about how the rainfall, monsoon progresses. And of course, Q1 earnings are a concern.