Experts Advise Caution on IT Stocks, Favor PSU Banks and Cyclical Sectors Amid Market Rotation

Market experts highlight structural challenges in India's IT sector due to AI disruption and valuation concerns, advising caution for investors despite recent corrections. They suggest potential downside for IT indices over the next 12-18 months. Meanwhile, value rotation favors PSU banks, energy, metals, and cyclical sectors like defence and capital goods, supported by strong order books and macroeconomic factors. Global market shifts from tech to real assets and cyclicals further reinforce this trend, with selective opportunities advised amid ongoing volatility.