Bullish on Infosys: Prakash Diwan, Altamount Capital Management

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management, shares his views on Infosys' Q2 results. Excerpts:

ET Now: What is your call on Infosys? Two parts to the question - One is of course the earnings commentary that the management gave. Secondly, the view on the stock and the arbitrage opportunity which comes in with the bonus issue?

Prakash Diwan: Let me address the capital gains opportunity first. One of the reasons why it could be attractive in the given environment as we have seen a lot of short term capital gains arise on most investors books is because of the kind of spurt that we have seen post May.

Usually equities are a fair quantum of long term capital gains, which is anyways the case but here there is a incidence of short term capital gains which could become tax productive and it is excellent. There is no doubt that the stock has a very limited downside to it. It could probably have a little bit of swing because of volatility in the market but otherwise fundamentally, it is on its way and getting into a new bull territory of sorts.

The commentary from the management very clearly indicates that good times are yet to begin. So, I am quite bullish on the story and because of that, it becomes a very good opportunity to have the tax harvesting from a short term capital loss.