BNP Paribas analyst on when to start buying IT stocks

With the Nifty IT index down 15% year-to-date, compared to a 3% drop in the broader Nifty, investors are wondering if now is the time to buy. Kumar Rakesh, India Analyst – Auto & IT at BNP Paribas, suggests waiting until April for a better entry point.

“Between now and April, we will see more consensus earnings cuts and a little bit of more moderation in terms of what the next year growth will look like,” Rakesh said. He expects IT companies to set conservative guidance, which could establish a bottom for the sector. This, he believes, will create a…