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 Below the quote on the IT sector outlook post the FOMC meeting from Vinod TP, Research analyst at Geojit Financial Services.

Despite muted Q1 results in the IT sector, optimism is slowly arising after the FOMC's recent rate hike. The U.S. Fed hinted at a soft landing of the economy as against the earlier expectation of a recession. Moving forward, the Fed indicated a reduced likelihood of another rate hike this year due to expectations of easing inflation. Conversely, the diminished recession concerns are likely to boost client confidence, leading to the release of deferred IT projects and enhancing revenue visibility in the Indian IT firm. Moreover, higher deal wins and demand for cloud computing, digitalisation, AI, and cybersecurity will support growth in the future. Although industry valuations have corrected significantly, limiting downside risks, this presents a favourable opportunity for long-term investors to accumulate IT stocks.

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