IT sector faces headwinds amid economic uncertainty and AI threats: Digant Haria
«We are at the end of that regulatory tightening cycle. Then second, interest rates have been very high for a long time. We are maybe three-six months away from where at least the liquidity part of the interest rates should start easing out unless Trump does something really drastic in US and then the asset quality cycle, that also in microfinance, personal loans, that we are already seeing that the deterioration has happened,» says Digant Haria, GreenEdge Wealth.
Is it going to be bigger, better for the financial sector because last two to three years, the Bank Nifty has been underperforming the benchmark index. A lot of these stocks are just sideways. This morning there is a positive news at least on Kotak Mahindra Bank wherein you have Citi upgrading it. But is it going to be a year of financials come back?
Digant Haria: So, you are right, last two years have been tough for the financial sector. The sector, it seems that the valuations are cheap, but then we have growth slowdown also. I do not think that the first half of 2025 is going to be any magic for this entire banking sector or the NBFC space. But we are very close to the bottom, if not the bottom and when we say bottom, it is in terms of business that the RBI started tightening somewhere 12 months back.
We are at the end of that regulatory tightening cycle. Then second, interest rates have been very high for a long time. We are maybe three-six months away from where at least the liquidity part of the interest rates should start easing out unless Trump
