“It would again be a muted quarter for most IT companies. The H-1B visa issue will play out in the medium term rather than immediately,” Baliga said.
He cautioned that while the near-term outlook remains subdued, the long-term trajectory for IT will depend on how companies reinvent themselves in response to evolving challenges — particularly AI adoption and the H-1B visa reforms in the U.S.
“We need to see how these firms reinvent themselves around both the H-1B issue and AI disruption. Those that adapt successfully should be on your buy list,” he added.
Real estate: Polarized growth ahead
Turning to the real estate sector, Baliga said a broad-based rally similar to the previous cycle may be difficult. While some developers continue to post strong sales, the market is increasingly polarized between affordable housing and premium luxury segments, leaving the mid-range under pressure.
“There’s clear inventory buildup in the Rs 3–10 crore segment. Demand is slack there. But affordable homes under Rs 1.5–2 crore, and luxury properties above Rs 12–15 crore in markets like Mumbai, continue to attract buyers,” Baliga noted.He suggested that investors should focus on listed developers with larger exposure to affordable and premium portfolios, which are likely to sustain demand momentum even in a slowing market.
Investor takeaway
Baliga’s advice comes as the markets navigate a delicate balance between global headwinds, domestic consumption strength, and sector-specific pressures.
IT stocks: Watch for reinvention plays in AI and H-1B adaptation.
Realty: Stick to developers catering to mass-market affordability or high-end luxury buyers.
While optimism persists among investors, Baliga suggests a pragmatic pause — a period to watch, not chase — as both IT and real estate sectors find their footing in a changing economic landscape.
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