The wider market has held steady even as information technology shares faced ongoing weakness. Market observer Neeraj Dewan noted that the sector came under pressure after firms gave cautious remarks following March quarter results, leading to continued sales. He said investor trust would return only if companies offer clearer growth prospects and better forecasts. Firms had not been upbeat about the year ahead, which shows in the selling pressure observed. Stronger signals from companies are needed to restore confidence, given the weak guidance provided. Valuations in several IT stocks have become more attractive after the sharp drop, with shares such as Infosys and Wipro approaching levels where further declines may be limited. Still, long-term holders are advised to wait for more visibility on business expansion before buying. Selling pressure should ease after the steep fall, and current prices at Infosys along with sharp drops in names like Wipro may form a floor even with modest growth. Investors should avoid rushing in and instead seek additional clarity and renewed momentum. Traders might see a technical recovery after the recent slide, as IT stocks have often rebounded following declines. Software product firms continue to outperform traditional services companies, so careful selection matters. Overall consolidation could persist. Dewan stays positive on banking, citing the sharp drop in crude oil prices as beneficial for the economy. Lower energy costs should help contain inflation, ease worries over rate increases, and support growth. Bank updates have been solid, and expectations for the financial sector remain intact. The main macro concern is monsoon progress, though other indicators such as auto sales look encouraging. In automobiles, commercial vehicles are preferred over passenger cars due to steady demand from infrastructure outlays and strong order books. Related auto ancillary firms should also gain. Dewan holds a constructive view on FMCG shares, expecting steady rather than rapid gains as inflation eases and prior price increases aid margins. Valuations appear reasonable versus historical norms. Recent results from value retailers like V2 Retail and VMart were solid, yet investors should watch valuations closely since premium pricing may cap returns and stock choice will be key.
