Sufficient room for earnings revision upwards later in the year for IT companies: Chakri Lokapriya

economictimes.indiatimes.com:

" If you look at the numbers, they are a small miss for TCS and HCL Technologies. But the companies again, both the companies are trading at close to their multiples so HCL Tech probably about 17 times, TCS slightly higher," says Chakri Lokapriya, CIO & MD, TCG AMCHow do you think the Street would read all this commentary and the performance? How much of a slam dunk or do you think there would be willing takers for IT stocks on declines? If you look at the numbers, they are a small miss for TCS and HCL Technologies. But the companies again, both the companies are trading at close to their multiples so HCL Tech probably about 17 times, TCS slightly higher.

So the downside from here is very limited. Second, the whole uncertainty in the short term, as the TCS management was talking about, there is an uncertainty in the short term. I think the uncertainty is because about the Fed's direction whether they will stop raising interest rates or not.

With the US inflation print yesterday coming in lower than expected, now there is again will be this talk that they might pause. If that happens, some of the discretionary spend for IT companies which has paused, will again come back alive. And so that is the reason I think the management are all talking about the second half pickup.