According to CLSA, the recent surge in Nifty IT has created an unattractive risk-reward profile. Despite the notable gains, the brokerage points out that there haven’t been any significant revisions to earnings per share (EPS) estimates, indicating that the market’s expectations are outpacing actual fundamentals. On the other hand, Morgan Stanley offers a more optimistic take. Although they acknowledge that there hasn’t been a substantial improvement in fundamentals, they believe the sector could be entering the early stages of a recovery cycle.
