India's IT sector may finally be attracting value investors after a prolonged correction, but market expert, Sandip Sabharwal believes the rally is unlikely to evolve into a long-term structural uptrend. While lower valuations and attractive dividend yields have improved the risk-reward equation, he sees the sector as a tactical opportunity rather than a buy-and-hold investment.
"The IT sector has been on a one-way downswing for almost the last year, and over the last three-four years it has gone nowhere. Valuations for TCS and Infosys have come down, so they present opportunities for value investors. But I see this more as a trading sector... we could make 10-20%, but I do not see the trend completely reversing," he said.
