Indian IT's Foreign Investment Wins Makes CMT's Tyler Wood Bullish On Stocks
Wood describes the IT space as a diversified sector currently, adding that Swiggy and Zomato are 'cutting-edge technologies'.
Information technology stocks like Swiggy Ltd., Zomato Ltd. and Tech Mahindra Ltd. are among some of the top picks of CMT Association Chief Executive Officer Tyler Wood, who underscored that the sector would be one of the leadership groups of the NSE Nifty 200.
IT is among the themes that will move the Indian markets higher, with the sector bringing in several foreign direct investments in recent times, Wood told NDTV Profit's Niraj Shah in a conversation, sharing his insights on the growth trends for Indian equities.
I see India as an outperformer or a leader among emerging markets.Tyler Wood
"On IT, what's happening is AI and semiconductor manufacturers have certainly brought a lot of foreign direct investors to lighten up their positions in emerging markets just with these last couple of weeks," he said. "But, again, that's a healthy pullback within an otherwise, well-intact secular bull market for India."
Wood described the IT space as a diversified sector currently, adding that Swiggy and Zomato were "cutting-edge technologies". "They're changing the way that citizens are getting their materials and food and all that."
The CMT Association CEO is more inclined towards a "diversified approach" as an investor than just picking single names. "Within the US, you know, everybody talks about Nvidia, but Nvidia is not the only name in the information technology sector that has been outperforming. So, I would argue the same thing for India," he explained.
The analyst said Tech Mahindra was one stock that looked "superb". "A rising tide lifts all ships and so, if information technology is outperforming, some of those really cutting-edge companies can pull along a lot of the other technology with them."
Wood said Zomato was sort of looking like ending the contraction period. "With all stocks, you can see consolidation over time or you can see consolidation in price,” he said. "I think what we are seeing, just in these last six weeks, is a consolidation over time. They needed to digest some of those gains and look really good."
