Business opportunities to remain strong for the IT sector, said Krishna Kumar Karwa, managing director of Emkay Global, on Monday, adding that employee cost and attrition have been a concern, but hiring has been aggressive.

In an interview to CNBC-TV18, Karwa said, “As far as business opportunities for most IT companies are concerned, there is no doubt about it. They are enjoying massive tailwinds in their activities within the IT space. Yes, there have been challenges as far as employee cost and huge attrition level that many of these companies are facing, but hiring is very aggressive.”

Talking about the Indian equity market, he said that 2022 is expected to be volatile. However, domestic fundamentals are strong.

Also Read: Expect 2022 to be volatile for equities; bullish on auto ancillaries focused on EVs: Emkay Global

According to him, the top 2-3 stocks in banking are heavily owned by foreign portfolio investment (FPI). “Whenever there is going to be any aggressive FPI selling, they would be under pressure, but having said that from a one-year perspective the private sector banks have underperformed and the public sector banks have outperformed,” Karwa said.

Also Read: Earnings growth to accelerate in India; economy entering into cycle of positive growth: Emkay Investment

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