Fresh geopolitical tensions, concerns over the IT sector and uncertainty in crude oil prices are keeping investors cautious, according to market experts. While some believe recent market dips offer long-term opportunities, others remain worried about slowing earnings and global risks.
Kshitiz Mahajan, CEO of Complete Circle, said the current tensions could continue for some time, leading to repeated market volatility. He pointed out that India is facing pressure from a weaker rupee, rising crude oil prices and the pending trade agreement with the US.
Mahajan believes steps on the taxation front could help attract more foreign and domestic investors. He advised investors to keep investing gradually instead of reacting to short-term market swings, adding that the current correction could prove rewarding over the next one to one-and-a-half years.
On the IT sector, Piper Serica Founder and Fund Manager Abhay Agrawal remained cautious. He said Indian and global IT services companies are struggling to find new growth drivers, while artificial intelligence is increasingly replacing some traditional IT services. In his view, the sector may continue generating profits and cash but is unlikely to deliver strong growth.
Mahajan, however, took a more positive view, saying mid- and small-cap IT firms could recover faster than larger companies as they adapt to AI and provide specialised support services.
Energy expert Narendra Taneja said oil prices may remain volatile as tensions involving Iran and the US continue, although markets have so far reacted calmly in the hope of a diplomatic solution.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
