Bearish on IT sector: G Chokkalingam, Centrum Wealth Management

G Chokkalingam, Executive Director & Chief Investment Officer, Centrum Wealth Management, in a chat with ET Now, gives his views on the IT stocks


There has been institutional interest building in IT stocks or export oriented companies in the back of what is happening with the currency. Is that a trade or a conviction call that you are also following?

No, we stay away from most of the IT major stocks. Rather we focus on certain selective midcap stocks where we think there could be acquisition game being played out. So tactically we are after certain select midcap stocks where the promoters holding is very low because the organic growth is now limited for IT majors. Logically speaking there would be a possibility of large IT companies going in for inorganic route to grow by acquiring these midcap companies like what happened to Patni Computers. We are bearish on IT sector and we stay away from most of the IT companies.