Is This The Right Time To Buy IT Stocks? Explained By Amit Khurana

Indian IT stocks are trading near six-year valuation lows, making the sector increasingly attractive for long-term investors. Strong balance sheets, healthy cash flows, attractive dividend yields, and a potential rupee tailwind for FY27 are among the key factors supporting the investment case. Amit Khurana, Head of Equities at Dolat Capital, believes the current opportunity is primarily valuation-driven, with the risk-reward equation turning favorable at current levels. While he does not yet see evidence of a major earnings rebound beyond the benefits of a weaker rupee, he expects the sector to deliver relatively balanced returns given the low valuations and strong fundamentals. Companies such as TCS, Infosys, and HCL Tech continue to stand out due to their cash-rich, debt-free business models and consistent free cash flow generation, making them closely watched stocks in the current market environment.