IT growth in near term to be modest, says Sneha Poddar of Motilal Oswal
Investors can expect significant growth in the capex, manufacturing, and infrastructure development in this financial year, says Sneha Poddar, AVP, Motilal Oswal in an email interview with MintGenie.
She also talks about her outlook on the Indian IT sector, likely impact of interest rate cuts by RBI in the near future. She also suggests the mutual fund categories which young investors should invest into based on their risk appetite.
India is currently experiencing a mini-Goldilocks moment due to solid macroeconomic conditions, healthy corporate earnings, peaking of interest rates, and ongoing policy momentum. India now boasts a unique combination of ‘size and growth’. It is set to exit FY24 with a GDP growth of over 7.6 percent.
Expectations of political continuity after the forthcoming Lok Sabha Elections should bolster the overall economic momentum further.
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High-frequency data (GST collections, auto monthly numbers, Power demand, PMI data, etc) indicates that earnings momentum will continue to remain intact going forward as well. Thus, the overall trend in the market remains positive.
Uncertain macroeconomic outlook continues to dampen the demand environment for the IT services industry. Despite some initial signs of pent-up demand, there is a continued pause expected in discretionary deals in the near term.
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Though we expect demand improvement in FY25 on the back of a positive outlook from US Fed and large order backlog; however, the certainty of this translating into tangible growth remains uncertain. While the
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