I.T. Stocks Rally: Value Buying Or Value Trap? What Investors Should Do Next

I.T. stocks have witnessed a sharp rally, but questions remain over whether the rebound is sustainable. Harsha Upadhyaya, CIO, Kotak Mahindra AMC, says valuations have become attractive, offering downside support, but the sector's business outlook remains weak. He points out that most I.T. companies continue to report muted growth and margin pressure despite a favourable currency environment. As a result, Kotak Flexi Cap continues to maintain an underweight stance on the sector. The expert believes investors should wait for clearer signs of business recovery before turning aggressively bullish on I.T. stocks.