NEW DELHI: Sentiment towards India’s IT services sector has turned more bearish amid rising global uncertainties, although investors remain hesitant to take strong directional bets, a report said on Friday.
BNP Paribas India said in its report that while uncertainty has increased, investors -- particularly hedge funds -- are avoiding clear market calls and are instead reducing exposure by trimming factor-based positions.
The report noted that recent volatility, including rapid reversals in US trade tariff policies, has made investors cautious about taking aggressive positions.
However, sentiment towards India has weakened, with concerns emerging over potential earnings pressure due to limited availability of liquefied natural gas (LNG), it said.
“While crude oil volatility is being seen as a temporary shock, the persistence of LNG supply constraints is viewed as a more structural risk for Indian companies, ” the report said.