Market outlook: IT results keep the spirits up, but valuations are stretching

So far, so good on the results front. In fact, the Q1 figures have been a picture of resilience. Both technology and consumer companies that have declared results so far have set a positive tone for market sentiment.

While the economy is lumbering, IT stocks were least impacted by the lockdown and managed to beat Street estimates. Other Nifty heavyweights continue on the growth path. HDFC Bank Q1 numbers were steady, despite the turbulence in Q1.

But the market’s mood could be tested as several private sector banks and financial firms are set to declare their results this week. All in all, more than 250 companies are set to declare their results, which include several Nifty 50 companies. Among them, engineering, discretionary goods firms and insurance companies will also reveal how much covid-19 has disrupted businesses.