Buy call on large cap IT:
Change of stance
Almost everyone in India markets was buying #TCS at 4000 in 2021-22. Even when Tata Sons sold some stake. Funds were happy to accumulate.
Today, at 2200, nearly everyone is suggesting a sell. The only sector that’s available at reasonable valuation is a consensus sell by the domestic funds. Some are even talking about chucking IT cos out of #Nifty50 index. Shows how short term momentum trading can grip investors.
Buy at 4000 but sell at 2000. All within 3 years. How will domestic long term investors make money when everyone behaves like a short term trader?
My take - large cap IT is the only reasonable value sector today followed by large banks. You can buy for superior long term returns and dividends. Everything else is a wealth killer. Just like last few years.
Caution- it may still correct by 20%. FIIs may still sell IT as #Accenture & #TCS have same market cap. They hold $100 BN of IT. But that’s the India capital control at work. That will stay.
My discussion on @ETNOWlive
The WORST THING about India:
I am watching a group of otherwise well put together men willfully watering down a nice whiskey. This behaviour is commonplace and a legitimate crime against humanity.
This practice must stop immediately or I will institute 1 billion% tariffs.