AnandRathi said it was positive on the IT sector where several stocks looked interesting. Margins of IT companies were likely to improve significantly, it said. AnandRathi added that the general mood among investors was positive and that markets were trying to digest news flow on the monsoon. The firm is of the view that there may be a meaningful breakout post September-October. Institutional appetite, it said, would improve if the market consolidated.

What you have seen in the market is a pretty strong run-up in the largecaps, and there is a bit of a pause coming now to digest some negative news which is coming from monsoons and swine flu. So there is definitely a scope to look lower down the list and look for these ideas in different sectors and IT is the one of the sectors that we are positive about and one of the reasons for having this conference is to look at ideas as what Allied just mentioned. A lot of these companies have unique stories and looking deeper into them now one can discover some gems for good investments, so that is the purpose of this conference and we have put together a set of companies where we think such stories are quite interesting and worth looking at.

The general mood is positive. We have had a strong run, so there is definitely some profit-taking which is visible in the last couple of weeks. However, the general mood is positive, what you are also seeing is that the market is trying to digest some of these newsflow that we have had on monsoons as well as flu-related issues. So you are seeing some downgrades happening on the macro forecast, and to that extent after the June quarter results, we had a good round of upgrades and overall earnings that has come to a bit of a pause and the next round of a broad-based move on the market will await the next round of earnings upgrades. So I think once we are down the road in September-October, by which time the monsoons would be fully digested and the global recovery and the impact of that on the earnings upgrades starts to see through more and that is when you will see a more meaningful breakout coming through in the markets.