Little more caution seen in IT: Arun Kejriwal; finds value in newly-listed ICICI Pru AMC

Market veteran Arun Kejriwal on Friday shared a cautiously optimistic note on the Indian IT sector, even as third-quarter (Q3 FY26) earnings from industry leaders Tata Consultancy Services Ltd (TCS) and Infosys Ltd came in strong. Speaking to Business Today, Kejriwal said that while the select results indicate stability, global uncertainties continue to warrant a measured approach toward IT stocks.

"There is hope that, probably, the worst is over and things could improve. But the present global situation doesn't make it as attractive as today's prices are. I still believe we need to look at it with a little more caution, because uncertainty still exists," he said.

"It might make sense to see how things happen in the coming quarter as well. Yes, valuations had been beaten down. So, some sort of nibbling into the stock could be advised, but putting in large investments in the IT space may not be the best thing to do," Kejriwal added.

Beyond IT, he maintained a positive outlook on the recently listed ICICI Prudential Asset Management Co Ltd. The stock has risen around 35 per cent from its issue price since listing. He pointed out that the company's large IPO size did not dampen market appetite.

"This was a company which had an IPO of close to Rs 11,000 crore. It's doing extremely well. The numbers that they have declared for Q3 FY26 are impressive. And it sort of negates the thought that you have of money from equity going to other asset classes," Kejriwal said.

He further noted that while some ultra high-net-worth individuals (HNIs) may be reallocating funds, retail participation through systematic investment plans (SIPs) continues to remain strong. "India still believes in SIP. And that money is what drives an AMC like ICICI," he also stated.

Kejriwal added that ICICI Prudential AMC is a stock he has personally added to his portfolio and expects it to deliver "25–30 per cent returns over a 12-month horizon."