Ashwini Shami, president, chief portfolio manager at OmniScience Capital noted that IT sector is currently facing fundamental challenges in revenue and earnings growth.
“IT is grappling with the AI-led transformation and the need to reinvent its growth business model. The corrections are a result of valuations that were steep relative to the growth the sector was delivering. The tipping point will come when valuations reach levels that are justified for single-digit growth rates,” Shami added.
Meanwhile, the gains were concentrated in a small group of stocks. Adani Ports was the standout performer, rising 9.45 per cent during the month. Dr Reddy’s Laboratories gained 5.77 per cent, while Coal India rose 5.16 per cent.