Unmesh Sharma, the Head of Institutional Equities at HDFC Securities, has expressed doubt about the IT sector, stating that it is not a strong buy at the moment.
He mentioned that the Nifty IT index seems to be fully valued, indicating limited potential for re-rating, with expected returns closely aligning with delivered earnings.
In contrast, HDFC Securities holds a more positive view on the consumer discretionary sector compared to staples.
Sharma emphasized that consumer durables are experiencing strong growth, which is expected to continue due to favorable near-term growth drivers.