The NIFTY IT Index surged 12% to 9,200 points on Tuesday as traders reacted to a bullish stance from Sandip Agarwal of Sowilo Investment Managers.
Agarwal, who has just increased the fund’s exposure to IT from zero to 20%, estimates a 30–40% upside for the index over the next 2–2½ years, driven by stronger operating leverage and a 5% currency‑gain upside.
Analysts had priced in a 7% rise in the sector’s earnings per share for FY28, but Agarwal expects a 45–70% jump, citing AI‑related services that could lift revenue share to 15–22% by FY29.
The AI boom is already reflected in the performance of big names: Infosys revenue grew 12% YoY, while Wipro’s margin expanded from 24% to 27% this quarter.
Sowilo’s portfolio now holds six IT names, with plans to add more if valuation gaps widen. The fund’s forward‑looking stance is likely to influence sector rotation as investors seek higher‑margin players.
With the next earnings release slated for May 28, 2026, traders may shift into beta‑weighted IT equities, anticipating sharper earnings beats amid a recovering global IT services landscape.