IT Sector In Trouble? Here's Why Abhay Agarwal Has A Bearish View

Abhay Agarwal makes a strong and contrarian call on the IT sector, revealing zero allocation to IT stocks in his portfolio for the past three years. He believes IT services companies are struggling to adapt to rapid advancements in AI, which is disrupting traditional business models. Highlighting global players like Accenture, IBM, and Capgemini, he notes that many are trading near multi-year lows due to weak growth outlook. According to him, IT firms risk becoming low-growth “utility” businesses with shrinking margins. Despite corrections, valuations may still be expensive, making the sector unattractive for long-term investors.