Seasonality, Contrarian Buying May Lift Battered Indian IT Shares

Indian IT shares may see a rebound in the second half of the fiscal year, driven by seasonal trends and contrarian buying. Historically, the July-December period has yielded an average return of 16% for these stocks, according to analysis of past performance. This suggests a potential upward trend following a period of underperformance. Investors may be looking to capitalize on lower valuations, anticipating a recovery in market sentiment and corporate earnings. The sector has faced headwinds, but the upcoming months could present an opportunity for value investors to enter the market. The expectation is that the positive seasonal bias, combined with strategic buying, could lift the battered IT stocks.