"The root cause" of the market uncertainty remains high crude oil prices, he said, adding that the outlook for the market would depend on how the situation evolves.
On the IT sector, Sharma said companies, as of now, have delivered relatively resilient results for the second consecutive quarter, with Tata Consultancy Services (TCS) and HCL Technologies reporting numbers that compared favourably with market expectations.
He noted that while the results may not have been exceptionally strong, they were better than what the Street had anticipated.
Sharma said HCLTech's revenue growth guidance of 2.5 per cent to 4 per cent was reasonable given the slowdown in the global economy and the pressures facing the US economy. He pointed out that IT companies derive a significant portion of their revenue from markets such as the US, Canada and Europe.
Against this backdrop, he considered the latest performance from these two IT companies encouraging.
Persistent Systems, LTM among preferred picks
On stock-specific opportunities, Sharma said Globe Capital has recommended long positions in Persistent Systems and LTM.
He added that midcap IT stocks appeared better placed to deliver relatively quick returns.
Concluding his remarks, Sharma disclosed that Globe Capital and its clients may hold positions in the stocks discussed.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.