The IT sector is a great business and long-term investors should look at this sector as a contra bet, market veteran Ramesh Damani told CNBC-TV18.
"I would take a contrary bet on technology. It is a bit unfair to what is happening to technology. These are great businesses. If you look at it from a 5-10-year perspective, I would take a bet on technology," CNBC-TV18 reported Damani saying so.
The IT sector has been among the worst-hit sectors amid talks of a recession in the US and the UK. The Nifty IT index is down 27% till October 21 against a percent gain in the benchmark Nifty.
However, quarterly earnings of the IT players have been broadly on expected lines. Analysts underscore that the sector has short-term headwinds, they are positive on the sector for the long term.
During TCS' Q2FY23 earning call on October 14, the CEO and MD of the IT bellwether - Rajesh Gopinathan - said that despite news flow around a possible economic slowdown across the world and client concerns over how that might affect their businesses, TCS hasn't seen any change in their spending on it so far.
Experts see value emerging in the IT sector.
"An important takeaway from the IT results announced so far is that the segment is doing well and the management commentary is optimistic. After the sharp correction in IT stocks from their highs, there is value in the segment now," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Disclaimer: The views and recommendations given in this article are those of individual analysts and broking firms. These do not represent the views of MintGenie.