There are very few sectors in India where one can say with reasonable certainty that most companies have quality balance sheets. The IT sector is one of them. Now, the hard fact is that when the markets are in bullish mode, nobody bothers to look at the balance sheet and the quality of earnings because cats and dogs are flying and it is easy to make money. It is only when a reality check takes place, as has been taking place in the past five months, that one realizes that it is a strong balance sheet that ultimately counts. Also, remember: Some of these companies might actually be unintended beneficiaries of Trump’s tantrums.
