Devina Mehra, Chairperson of First Global, believes crude prices will be the key factor that will influence the domestic market in the coming months as they will not only have a direct impact on inflation but will also affect the input costs of many sectors such as FMCG, chemicals, textiles, paint, cement, etc.
"If I look at the economy as well as corporate earnings, to my mind, that one theme which can change a lot of things is crude," Mehra said in an interview with ET Now.
Mehra believes the March quarter earnings will be a mixed bag and if the crude prices remain lower, the impact will be visible in the Q1FY24 numbers.
Mehra said she remains overweight on the industrial and capital goods sectors even though she has done some reshuffling and booked profits.
Talking about the IT stocks, Mehra said it is a big knee-jerk reaction to Q4 results but the IT pack is not going to see any secular disaster.
"It is a big knee-jerk reaction to results that came out but is that showing that there is going to be some secular disaster in IT? I do not think so," said Mehra.
"This is showing that yes there are issues in the Western economies and therefore the sales cycle gets extended. Therefore you do not land as many deals as you hope to within a quarter or so, but I do not see it as being something of a disaster which will last forever," Mehra told ET Now.
She underscored demand will never dry up for technology and while this may be a bad year for the sector, it will remain relevant due to the move towards more and more digitisation.
Disclaimer: This article is based on ET Now interviews (Part-1) and (Part-II). The views and recommendations given in this article are those of the expert. These do not represent the views of MintGenie.