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Strong run in IT stocks likely to continue: Aditya Birla Sun Life AMC

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In an interview with CNBC-TV18, Patil, Co-Chief Investment Officer, Aditya Birla Sun Life AMC, said that the sector was expected to clock double-digit revenue growth after many years. “In that scenario, the stocks will continue to do well,” he said. “While valuations look to be on the higher side, the sector has the best narrative. The order pipeline too is very strong.”

After a solid performance in 2020, IT shares may continue to do well next year, according to leading fund manager Mahesh Patil.
In an interview with CNBC-TV18, Patil, Co-Chief Investment Officer, Aditya Birla Sun Life AMC, said that the sector was expected to clock double-digit revenue growth after many years. “In that scenario, the stocks will continue to do well,” he said. “While valuations look to be on the higher side, the sector has the best narrative. The order pipeline too is very strong.”
Patil added that the economic recovery from the pandemic looks to be taking place across the board. “A lot of sectors, which were depressed are looking up and also the outlook for flows into the emerging markets (EMs) is looking very strong getting into the next calendar year.”
Valuations from a near-term perspective are on the higher side, Patil said. “It is a healthy correction that we are getting in. it is a good opportunity to buy a few stocks which have rallied quite a bit.”
The real estate space looks positive going forward, coming as it does from a long downcycle. “Interest rates are at a 13-year low. We have seen good pick-up in terms of property sales in last two months.”
For the full conversation, watch video

Market Movers

CompanyPriceChng%Chng
Dr Reddys Labs5,260.00 -151.25 -2.80
Axis Bank742.05 -14.25 -1.88
Cipla937.25 -13.30 -1.40
Kotak Mahindra1,717.30 -23.30 -1.34
Sun Pharma696.15 -7.25 -1.03
CompanyPriceChng%Chng
Dr Reddys Labs5,263.60 -145.55 -2.69
Axis Bank742.55 -13.60 -1.80
Kotak Mahindra1,717.30 -23.10 -1.33
Sun Pharma696.00 -7.55 -1.07
HCL Tech990.00 -10.00 -1.00
CompanyPriceChng%Chng
Dr Reddys Labs5,260.00 -151.25 -2.80
Axis Bank742.05 -14.25 -1.88
Cipla937.25 -13.30 -1.40
Kotak Mahindra1,717.30 -23.30 -1.34
Sun Pharma696.15 -7.25 -1.03
CompanyPriceChng%Chng
Dr Reddys Labs5,263.60 -145.55 -2.69
Axis Bank742.55 -13.60 -1.80
Kotak Mahindra1,717.30 -23.10 -1.33
Sun Pharma696.00 -7.55 -1.07
HCL Tech990.00 -10.00 -1.00

Currency

CompanyPriceChng%Chng
Dollar-Rupee74.43000.01250.02
Euro-Rupee87.77100.06900.08
Pound-Rupee102.80700.12800.12
Rupee-100 Yen0.67530.00120.17