According to market expert Sandip Sabharwal, while there have been reports of deal wins in the IT sector, the actual revival of stocks is unlikely. Sabharwal highlights that most of these deal wins are on paper and do not translate into meaningful business growth. He mentions that the demand for IT services has been subdued, and the sector is facing several challenges related to significant client consolidation and pricing pressures. Sabharwal predicts that IT companies are likely to face headwinds in the coming months, especially due to the continued impact of the pandemic on global businesses. Despite the industry showing signs of revival earlier this year, the situation remains uncertain and may not translate into substantial growth for IT stocks. Investors need to be cautious and assess the long-term prospects before making investment decisions in the IT sector.
