Market under pressure: IT stocks face long-term headwinds as oil crisis and AI shift weigh on sentiment: Vinit Bolinjkar

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Vinit Bolinjkar of Ventura Securities issues a strong sell call on IT stocks, warning that an oil-supply shock in the Strait of Hormuz, persistent foreign institutional investor outflows, and a global shift to AI infrastructure are creating long-term headwinds for the sector. He expects revenue and margin pressure for traditional IT services as AI reduces demand for legacy work and forces talent rationalisation. Bolinjkar recommends booking profits in IT counters, favors Vodafone Idea as a telecom switching opportunity, and notes the consumer sector is outperforming in the current earnings season. He also cautions that sustained high oil prices could worsen fiscal and currency pressures and drag markets lower.

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