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Below is Quote on IT Sector outlook 14 March 2023 By Vinod Nair, Head of Research at Geojit Financial Services

The IT sector was the biggest business beneficiary and stock market performer during the COVID period. This high growth reduced in the post-COVID period, leading to the weak performance, any setback is having a high negative effect on the sector. The current weak global cues following the default of Silicon Valley Bank, a leading lender of start-ups in the U.S., triggered concerns over the banking system, the funding of start-ups, and the US economy. India's IT industry has a high exposure to the U.S. economy and BFSI sector, leading to a sell-off. However, the current uncertainty is on US small to medium banks, and relief measures announced by the Federal Reserve are expected to moderate the concern. The future outlook of the US economy is stable, and a slowdown in start-ups is unlikely to affect the giant Indian IT sector. The ongoing sell-off can be used as an opportunity by long-term investors because the outlook is intact as the decent amount of correction is attractive. In terms of valuation, the sector has corrected heavily from extreme peak levels to just above its long-term range.

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