Worries over a demand slowdown is weighing down stocks in the information technology sector. In the recent quarterly results, IT majors have reported weak numbers as customers held back spending. Given this scenario, should investors stay away from IT stocks or use the recent correction to accumulate for long-term play?Analysts expect the stocks to remain under pressure in the near term, as the second half of the financial year is seasonally weak for IT companies. Kulkarni insists, “The Indian IT industry being the most resilient one— having witnessed many booms and busts—will overcome temporary setbacks. Also, deal wins have continued to be robust.Analysts say TCS has guided to better revenue growth in the next two quarters as revenue from accumulated deal pipeline would accrue.

Source: Economic Times October 24, 2016 00:56 UTC