Should You Invest in Indian IT Stocks? Ventura Securities Issues Caution

Should You Invest in Indian IT Stocks? Ventura Securities Issues Caution

Investors Urged to Be Cautious on IT Stocks: Ventura Securities Advice

Indian IT stocks have delivered strong returns in recent years, but investors are being advised to exercise caution due to mounting risks in the US market, according to Vinit Bolinjkar of Ventura Securities.

“The IT sector has been performing well, but we remain a bit cautious,” said Bolinjkar. “Indian IT companies have heavy exposure to the US, and ongoing negative developments there, including tightening H-1B visa rules and potential disruptions from AI, present real red flags for revenue and hiring.”

Instead of IT, Bolinjkar recommends domestic-focused sectors as safer investment options. The finance sector, particularly public sector banks like Canara Bank and SBI, along with private players such as HDFC Bank and NBFCs, are expected to benefit from GST-driven consumption growth and upcoming expansions.

While IT stocks may still offer opportunities, Bolinjkar warns that the risk-reward ratio is currently less favourable compared to domestic plays. For investors seeking steady exposure to India’s economic growth, domestic-focused sectors may provide more secure and predictable returns.

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