IT, cement and telecom among top sector bets after market selloff: Quest Investment

What happened

Quest Investment Managers is repositioning its portfolio after a recent Indian equities correction, naming information technology, telecom and cement as preferred sectors for the medium to long term, and has added exposure to mid-tier IT services companies including Mphasis and Persistent Systems while Coforge remains a large holding.

Confirmed

Global impact / market context

The fund's sector choices show where professional investors see strong future earnings at reasonable prices after the selloff. Adding mid-tier IT services companies signals growing confidence in their sales and profit growth, which could draw more investor money toward these firms.

Analyst inference

A global shift away from riskier assets, driven by higher bond yields and uncertainty over US interest rates, midterm elections and geopolitics, pushed Indian stocks lower. Quest views this weakness as a chance to buy businesses with strong earnings, while taking profits in power equipment makers.

Analyst inference

What to watch

1. Quest has increased exposure to mid-tier IT services companies after a long cautious period, with Coforge among its largest holdings and Mphasis and Persistent Systems newly added. Confirmed
2. If India's earnings keep beating expectations, more investors may copy Quest's shift into IT, telecom and cement, potentially supporting those share prices and pulling money away from expensive areas. Analyst inference
3. Watch whether higher bond yields and the US Federal Reserve's rate decision ease or worsen, since calmer conditions could encourage buying, while further rises in yields might extend the selloff and pressure valuations. Proposed

Evidence

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