Articles by Anupam Nagar

Technology

Pankaj Pandey bullish on Arvind Fashions and Trent as GST cuts boost margins

ETMarkets.comAs India’s earnings season gathers steam, investors seem to be weighing valuation comfort in IT, structural growth in healthcare, resilience in BFSI, and recovery prospects in fashion retail—all of which could determine the market’s direction in the weeks ahead. The technology sector continued to dominate market discussions this week as investors brace for a flurry of updates from top IT firms. TCS will kick off the earnings calendar, followed by management commentary and subsequent market reactions later in the week.Speaking to ET Now, Pankaj Pandey, Head Research, ICICIdirect.com highlighted that the IT index has seen a 20% year-to-date decline, pushing valuations to four-year lows. “Some of the positives which are still ignored is, say, for example we have seen a decent amount of currency depreciation of Indian rupees versus euro of 11 odd percent against pound it is about 6.5 odd percent,” Pandey said. He added that these currency movements could ease margin pressures but cautioned that the AI-led rally in global markets needs to settle before a sustainable recovery in IT stocks can take shape. “Valuation-wise and price correction-wise risk-reward is better, but when the reward will come we do not know,” he noted.On the healthcare front, optimism remains high as the sector continues to deliver strong updates. “In the healthcare space what we like is the hospital as a space. Our sense is that overall hospitals can deliver 17-18% kind of a growth over the next three-four years largely because of rising disposable income,” Pandey said. He pointed out that leading hospital chains plan to add nearly 20,000 beds to their current capacity of about 46,000, and that organised players are likely to gain market share. Among key picks, he mentioned Apollo Hospitals, HCG, and Narayana Hrudayalaya as preferred bets.Turning to banking and financial services, Pandey expressed continued confidence in both PSU and private banks. “On the PSU banks what we are liking is SBI, then beside that Indian Bank. Indian Bank also came out with pretty good set of numbers,” he said. He added that Bank of India has shown stronger advance growth than the overall system, and that margin pressures are already priced in. According to Pandey, with FPIs no longer heavy sellers, “BFSI as a segment can incrementally improve and protect lower levels in the Nifty.”In the fashion retail segment, momentum appears mixed as competition intensifies. “In this fashion retail space Trent numbers are slightly soft even though the base was higher last year,” Pandey said. However, he remains optimistic about growth in the second half, citing lower GST rates as a key tailwind. “Besides Trent, what we like is Arvind Fashions because for them 40% of the portfolio will benefit from this lower GST levels and our sense is that we would see margin recovery shaping up well for that company,” he added.Live EventsAs India’s earnings season gathers steam, investors seem to be weighing valuation comfort in IT, structural growth in healthcare, resilience in BFSI, and recovery prospects in fashion retail—all of which could determine the market’s direction in the weeks ahead.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) Read More News onindian banktrentPankaj PandeyIT sectorhealthcare sectorBFSI sectorTCSfashion retail sectorsbibank of india (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless (You can now subscribe to our ETMarkets WhatsApp channel)Read More News onindian banktrentPankaj PandeyIT sectorhealthcare sectorBFSI sectorTCSfashion retail sectorsbibank of india(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories

Technology

Prolonged US shutdown could trigger aggressive Fed rate cuts, warns Cardillo

ETMarkets.comAs global investors weigh Japan’s leadership shift, gold’s rally, and US bond market signals, the broader picture remains one of cautious optimism mixed with persistent uncertainty. Global markets are watching Japan closely this week as the election of Sanae Takaichi, the country’s first female prime minister, reshapes investor sentiment. The yen tumbled sharply against the dollar, while Japanese equities surged to fresh highs on expectations of policy shifts under her leadership. “Yes indeed,” said Peter Cardillo, Chief Market Economist at Spartan Capital Securities, in a conversation with ET Now. “It caused their currency to take a pretty steep dive and again that is against the dollar and that ignited a very powerful rally in the Japanese stock market and it will probably continue for another day or two.” Cardillo noted that investors are optimistic about potential monetary easing. “It looks as though there is a good possibility that stimulates will be cut back and the possibility of a rate cut is on its way and so, the Japanese stock market applauded the election of the first female ever prime minister,” he added. Meanwhile, gold continues to capture global attention as it pushes to new record highs. Despite repeated calls that the yellow metal might have peaked, prices have continued to climb, now sparking speculation about the possibility of $5,000 per ounce. “It is very real,” Cardillo said, referring to the bullish momentum. “In fact, my near-term target is 4150 and so after that it could level off for a while but eventually we go into 5,000. All the ingredients for the gold market to continue to rise are in place and it was long coming.”Live Events He pointed to central bank buying and persistent market uncertainties as key drivers. “From fundamentals perspective central banks continue to be big buyers and this is a key point. But, of course, with the stock markets continuing to reach new highs, the gold market is a good place to bet your hedges,” Cardillo added. Turning to US bond yields, Cardillo noted that markets are bracing for upcoming Treasury auctions that could test investor appetite. “It has been up one or two days and the reason for that is this week, in fact, beginning today we have the three-year auction and then followed by the 10-year and then, of course, the 30-year and the market is positioning itself for those bond auctions,” he explained. He cautioned that demand might not be strong given the ongoing policy uncertainty. “I do not see a very strong demand and the reason why I say that is because again the possibilities of the Fed still holding off before becoming aggressive in terms of cutting interest rates is very real and that is because of the sticky high inflation that we have,” he said. Cardillo also flagged that a potential US government shutdown could alter the Fed’s stance. “Now, one could make the case that the government shutdown, if it were to linger, let us say, over two or three weeks, then there is a good possibility that the Fed could become more aggressive and actually cut by 50 basis points, but that is yet to be seen,” he concluded. As global investors weigh Japan’s leadership shift, gold’s rally, and US bond market signals, the broader picture remains one of cautious optimism mixed with persistent uncertainty.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) Read More News onUS government shutdownFed rate cutsPeter CardilloJapanese stock marketgold pricesglobal markets (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless (You can now subscribe to our ETMarkets WhatsApp channel)Read More News onUS government shutdownFed rate cutsPeter CardilloJapanese stock marketgold pricesglobal markets(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories

Technology

Tech sector rally: Tactical moves or fundamental shift? Insights from Sandip Agarwal

ETMarkets.comPlatform-focused consumer tech, however, remains a compelling long-term story. The Indian IT sector is under scrutiny as the earnings season kicks off. ET Now recently spoke with market expert Sandip Agarwal from Sowilo Investment Managers to understand whether recent market moves are sustainable or tactical.Tactical Moves in IT?According to Agarwal, “The sector has underperformed for a long time. People are hoping for positive commentary this result season, which could have triggered defensive buying. But large-cap IT growth is now low single digits, with high PEG ratios, so structurally we are not positive on the sector.”Rate Cuts and Bottoming OutOn whether rate cuts could help, Agarwal said, “Dividend yields are becoming attractive, so some fund managers may buy. But large-cap IT will remain a 5-6% growth sector. The bottom may come when forward multiples fall to 13-14x for large caps and 18-20x for midcaps.”Fundamentals vs RallyAsked about the rally’s sustainability, Agarwal noted, “It is not a fundamental rally. A 4-5% growth industry doesn’t justify the current multiples.”Live EventsOpportunities in E&RD and PlatformsOn pockets of interest, Agarwal commented, “We like E&RD for its growth, but valuations are high. We prefer platform companies, which are scaling fast and offer more clarity and visibility. We’ve shifted much of our portfolio there.”The “Mag-7” of Indian Consumer TechRegarding favorite consumer tech stocks, Agarwal said, “The Mag-7 are very bullish picks. In 10-15 years, these could individually reach $1 trillion market cap. India has a huge population, and these platforms are leveraging human resources brilliantly. We are very bullish on them.”ConclusionAgarwal’s view suggests short-term rallies may occur, but structural growth in large-cap IT is modest. Platform-focused consumer tech, however, remains a compelling long-term story.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) Read More News onIndian IT sectormarket expertconsumer tech stocksIT growthplatform companiesSowilo Investment Managers (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless (You can now subscribe to our ETMarkets WhatsApp channel)Read More News onIndian IT sectormarket expertconsumer tech stocksIT growthplatform companiesSowilo Investment Managers(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories