Why this is not the perfect time to join the IT bandwagon

This may not be the perfect time to buy them aggressively as the recent spike is due to lower valuations, say fund managers

While the stock market has been on a one-way rally, hitting new highs every few days, investors in information technology (IT) stocks would have been not a happy lot. For months, these stocks have been lagging the broader indices because of US President Donald’s Trump’s plans to tighten visa rule and the overall feeling that the Indian IT companies are lagging, in terms of technological advancements like artificial intelligence.

Thankfully, things seem to be improving. With the Trump government deciding not to make significant changes in its visa guidelines currently and chances that overall global growth will improve, there is