Pharma offsetting some of the impact from IT: Vinod Karki

The soft outlook on IT is being compensated by pharma exports, says Vinod Karki, ICICI Securities’ equity strategist. He adds that while the Indian IT services sector doesn’t have any structural issues, resetting itself is painful, with short-term uncertainty. However, the investment cycle aided by real estate and manufacturing cycles give confidence that future demand will be sustained, meaning the earnings downgrade cycle will not be there.