Time To Shift Focus From Large-Cap IT To Small & Mid-Caps, Says Equinomics’ G Chokkalingam

The IT sector is seeing a sudden rally! But is it sustainable? Market expert G Chokkalingam weighs in this excerpt. He believes today's IT surge is partly fundamental, but also 'tactical or perceptive or speculative.' According to him, the 'wealth creation story in the IT sector in the short to medium term is over' for large caps. Instead, he suggests focusing on 'small and mid-sized IT stock' that have been 'beaten down 30 to even 50 percent,' where some recovery is happening. He cautions against reading too much into the rally, citing weak Q4 results and limited growth in dollar revenues for large-cap IT companies. He also anticipates a potential 'merger and acquisition consolidation phase' in the IT sector. Should you chase the rallying large caps like Infosys, or look towards beaten-down smaller players for 'some alpha'? G Chokkalingam shares his insights on navigating this fresh move in the IT pack. Watch this insightful conversation to understand where the smart money might be headed in India’s IT space.