Tech in the US will probably have a bit of rebound in the short term which will lead to a better sentiment and narrative around IT stocks and then drift down to some of the internet stocks, said Andrew Holland, CEO, Avendus Capital Public Markets Alternate Strategies LLP said in an interview with ET Now.
Holland also said, "fintech companies will come through and if you are correct in saying that the move towards making money is going to be at the forefront of their minds, then obviously that bodes well for making money in the shares going forward."
Holland said he was closely looking at stocks of Nykaa, Paytm and Zomato.
"The trend in these industries will not go away from us. For now, I would be looking very closely at Nykaa, Paytm and Zomato in terms of their business models and if they can sustain what they have been doing and continue to grow into what should be a huge industry for all of them, then this is the time to kind of dip in," he told ET Now.
Earlier, Dhananjay Sinha, Head of Research- Institutional Equities, Systematix Shares had told ET Now in a separate interview that the current market scenario, when the market yields and the risk-free rates are going up, may not be ideal for new-age tech companies.
Sinha said unless there is good visibility in the regular and steady businesses, the companies that are in niche businesses and are a developing sort of industry, structurally will do much better later two or three years down the line.
Disclaimer: This article is based on an ET Now interview, published by economictimes.com. The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.