As IT services companies continue to re-architect their business models, earnings growth visibility has weakened. Therefore, investors should not rush to buy into the mirage of undervaluation in the IT space, he advised.
Shami believes the market has already moved beyond the US-Iran conflict and is now focusing on normalized earnings growth in FY27. This is reflected in market performance, with the sharp rally in Nifty Smallcap 250 and Midcap 150 indices.