Remain invested in IT stocks: Vikas Khemani, Edelweiss Securities

In a chat with ET Now, Vikas Khemani, President and Head-Institutional Equities, Edelweiss Securities, shares his views on IT stocks.

ET Now: What is your call on IT stocks?

Vikas Khemani: There has been concern around the growth environment for the IT stocks. Infosys has been guiding cautious growth environment while some of the other IT companies have been slightly more positive than Infosys. So, one will have to see how the environment turns out to be but currently the currency environment is a lot more favourable to IT companies and. In a market like this where if one has to invest, there are very few sectors where one can have moderate confidence about growth profile continuing at a reasonable valuation which is where the IT falls in.

This is the reason if we see most of the portfolio managers ends up owning if not overweight at least equal weight in IT. This is holding the IT valuation and I see that trend continuing. IT will continue to be the place for hiding and continue to be the place for remaining invested in. Otherwise, muted growth environment despite the concerns of the US growth slowing down or IT budget slowing down.