Markets may remain under pressure in the near term as uncertainty around global tensions and weak earnings continues to weigh on sentiment, said Avinash Gorakshakar of Avinash Mentor Research.
He pointed out that the recent earnings season, especially for IT companies, has been largely disappointing. Even smaller firms have failed to impress, which has added to investor concerns. At the same time, global factors such as geopolitical tensions and the lack of a clear resolution are keeping markets cautious.
Gorakshakar warned that if the situation does not improve in the next few days, markets could stay volatile. Rising food prices and a widening current account deficit are also emerging as key risks that may hurt company earnings going forward. Foreign investors selling shares is another factor adding pressure.
On IT stocks, he said they have seen sharp corrections, but many companies remain cash-rich with stable order books. While immediate gains may be limited, there is potential over the next few quarters if firms use their cash for acquisitions, especially in areas like AI and machine learning.
He also said that banks will need to invest more in AI to improve productivity and protect against rising cyber risks in the future.
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