New Delhi, Feb. 27 -- The IT sector is on the cusp of a major transition, which could be painful. Investors should stay away from the sector for some quarters to see how the sector evolves, said Karan Aggarwal, co-founder and CIO of Ametra PMS- a quant-based PMS and portfolio manager- in an interview with Mint.

"We would advise investors against any rush to buy the dip," Aggarwal said.

More than IT, Aggarwal's biggest worry is the discretionary consumption story, which he expects to remain stagnant for the next few years due to AI-led disruption, potentially triggering white-collar layoffs, deep cuts in pay packages, and the shrinking of the middle class.

Over the last eight months, large- and mid-cap stocks have been in a period of co...