Why Nischal Maheshwari Now Prefer Large-Cap IT Over Midcaps?

The IT sector is entering a promising phase, with experts now seeing stronger opportunities in large-cap companies. While midcap IT stocks performed exceptionally well over the last few quarters, driven by robust growth and market momentum, their valuations have become expensive. In contrast, large-cap IT firms have corrected meaningfully and now offer far more attractive entry points for long-term investors. Many of these companies are debt-free, hold substantial cash reserves, and continue to reward shareholders through buybacks and steady dividends, making them appealing value plays. As global demand stabilizes and market confidence improves, analysts expect large-cap IT to bounce back sharply this year. With compelling valuations and improved earnings prospects, fresh institutional and retail flows may increasingly favor large-cap IT leaders.