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Informist, Tuesday, Jun. 16, 2026

 

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--Ventura Sec: Inflation seen hitting Q1 earnings of cos 
--Ventura Sec: Continue to be bearish on IT sector due to AI impact 
--Ventura Sec: NMDC seen doing well on back of iron ore, infrastructure ops 
--Ventura Sec: See Gravita India stock at record high on capacity addition 
--Ventura Sec: Garden Reach seen growing well on strong order book 
--Ventura Sec: IOC to see margin recovery if crude oil prices ease 
--Ventura Sec: Expect more govt policy measures going ahead for FII inflows 

 

MUMBAI – The advancement of artificial intelligence, which poses a threat to software services firms, continues to lead to bearish sentiment in the information technology sector, said Vinit Bolinjkar, head of research at Ventura Securities. Indian IT companies are likely to feel the heat if the services sector declines at a pace that is faster than the integration of AI, Bolinjkar said in a webinar Tuesday.

 

"We have seen some of the very large names, we've seen Wipro, Infosys, TCS massively underperforming the markets. And unless these large companies are not able to grow AI faster than the decline in their existing sectors or their verticals, then I think there is still further downside expected out there," Bolinjkar said. He said that the AI boom is taking place and the recurring existing models will be defunct going ahead. In the IT sector, Bolinjkar prefers Coforge and Persistent Systems as these companies have bucked the trend and he expects the margins of these companies to expand going ahead.

 

Bolinjkar expects at least 10-12 semiconductor factories and chip manufacturers playing out in India. "...the kind of incentives that the government has given for build-out our data centre capacity in India and the big billion-dollar deals that are being placed are the harbingers of a (AI) story coming to play in India," he said.

 

On the overall earnings outlook for Indian corporate companies, the analyst said that the June quarter is expected to be a little "depressed" owing to high inflation. Margins of many companies will be surprisingly negative going ahead, Bolinjkar added. For the better part of Apr-Jun, oil prices were in the range of $90–$110 per barrel, which led to inflation, he added.     

  

The West Asia war is not going to conclude that easily as Israel and Iran are fighting an ideological war, the analyst said. The situation in the region is still fluid and Israel has quietly distanced itself from the US, indicating that Tel Aviv will continue to take action in its own interest, Bolinjkar said. "I pray that it ends very soon, but this will continue and it will be more of a conflict which is along the lines of what we have seen play out between Ukraine and Russia," he said. 

 

To a query regarding outflow of foreign institutional investments from India, Bolinjkar said he expects more policy measures to come in, which will attract foreign capital investment. Bolinjkar mentioned that the rupee would improve against the dollar going ahead and projected the Indian unit to touch 90–93 a dollar.

 

On stock-specific preferences, the analyst said that NMDC is expected to do well as its infrastructure and iron ore business are strong. Hindustan Zinc and Hindustan Copper are also among his preferred stocks. The stock of recycling company Gravita India is expected to hit a record high in the near term as the global demand and capacity additions are likely to aid the company, the analyst said. 

 

Shipbuilding companies, especially defence players, are also seen doing well, on the back of strong order book. Garden Reach Shipbuilding is expected to perform well given its healthy order pipeline, particularly from the defence sector. Bolinjkar is also bullish on oil marketing major Indian Oil Corp. Ltd. Easing of crude oil prices is likely to support the downstream company and help it see a margin recovery and strong growth, the analyst added.  End

 

US$1 = INR 94.57

 

Reported by Adhithya Aji and Simran Rede 

Edited by Avishek Dutta

 

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