Remain very cautious on the IT sector: G Chokkalingam

In a chat with ET Now, G Chokkalingam, Executive Director & Chief Investment Officer, Centrum Wealth Management, shares his views on IT stocks.

ET Now: What is your call on the IT space?

G Chokkalingam: The going will get a little tough for IT space. The rupee already has started appreciating. We were expecting 10% appreciation in next six months to one year. However, in this month rupee has appreciated 7% percent and there is a possibility of a substantial upside risk to rupee. Furthermore, there is no clarity emerging from the western world.

So, I would still remain very cautious on the IT sector as a whole. I would go only with the leader in the IT space - Infosys. Otherwise, I would stay away from most of the IT players. This is because in 2011 we have seen meltdown in many midcap stocks. So I would suggest to look for midcap ideas outside IT space.