Quarterly numbers of Infosys and TCS failed to excite IT sector investors, putting onus on midcap IT firms to deliver good results. Following muted numbers
by two tier-1 IT firms, experts have largely turned negative on the sector, given the weakness in BFSI space, delays in orders and client-specific issues.

Meanwhile, D-Street experts expect good set of numbers from midcap IT firms.

“IT is a sector which I would not like over the next one-two years because it is going to grow much slower than what it should be. Companies are trying to
move up the value chain, but we have not seen that transformation really succeeding. So to that extent, they need to keep focusing on how they can change
and withstand a macro environment which is not really going to be very favourable to them,” said Jyotivardhan Jaipuria, Founder & MD, Veda Investment
Managers.

Jaipuria, however, said that IT sector could ‘ironically’ outperform the market because nobody really owns it.

“Everybody is under-owned on the sector. It is a sector which has done very badly. So to that extent, the sector could end up outperforming a weak market
simply because of the lack of ownership,” Jaipuria said.

Trip Chowdhry of Global Equities Research, said that the sector going though major challenges as it is correlated to the US economy that “would be entering
recession probably by March next year.”

Meanwhile, there are experts who feel that if an investor is looking to invest in the sector he/she should consider midcap names such as Persistent Systems
or Cyient.