Anil Rego, Founder and Fund Manager at Right Horizons, indicated that the worst of the correction in the information technology (IT) sector may be behind it. He highlighted five key catalysts that could support a market rally, including India's private capital expenditure cycle and infrastructure spending. This assessment was made during a commentary on July 17, 2026.
Growth Drivers
Rego pointed to structural themes such as manufacturing expansion, defense, energy transition, and digital infrastructure as foundational elements for medium to long-term growth in India. He expressed optimism about these sectors, suggesting they could provide substantial opportunities for investors.
Market Outlook
The analyst also noted that while the pharmaceutical sector presents opportunities, he expects returns to become more stock-specific. Additionally, he anticipates that the Federal Reserve will maintain its current interest rate stance in July, as recent inflation data appears encouraging. This could further influence market dynamics, particularly in sectors sensitive to interest rates.
A recovery in the IT sector could positively affect technology stocks and related indices, as investor sentiment improves. Additionally, sustained infrastructure spending may boost sectors linked to construction and manufacturing. Investors will watch for the upcoming Federal Reserve meeting in July for insights on future monetary policy direction.