Bullish on IT space: Gopinath Natarajan, IIFL PReMIA
We are fairly bullish on the IT space. In the next two years, there is enough visibility with almost $20-25 billion of deals up for any wealth.
By 
| Updated:
| Updated: Gopinath Natarajan, EVP, IIFL PReMIA, in a chat with ET Now, gives his call on the IT space
How are you reading into the results, which have come up till now, especially in the auto as well as the IT space?
We are fairly bullish on the IT space. In the next two years, there is enough visibility with almost $20-25 billion of deals up for any wealth but yes, the near-term headwinds are still there. Any negative news, which comes out of US or Europe tend to have an impact here on the prices of the IT stocks and also the fact that what we are critically watching out for in the next couple of quarters is the pricing environment. If there is any further deterioration in margins, so that could possibly be a dampener if that were to happen but by and large, we are bullish on the IT space.
Our best picks remain there as Infosys, Satyam and HCL Technologies. On the large-cap side, obviously we like Infosys. Satyam is a story, which we think will pan out in the next one year or so. We expect pricing to come back where valuation discount compared to peers, its pretty wide, so there is some bit of scope there for appreciation. HCL Tech is a high growth story, so not necessarily in the same order but these are all different business models giving different kind of opportunities to investors.
How are you reading into the results, which have come up till now, especially in the auto as well as the IT space?
We are fairly bullish on the IT space. In the next two years, there is enough visibility with almost $20-25 billion of deals up for any wealth but yes, the near-term headwinds are still there. Any negative news, which comes out of US or Europe tend to have an impact here on the prices of the IT stocks and also the fact that what we are critically watching out for in the next couple of quarters is the pricing environment. If there is any further deterioration in margins, so that could possibly be a dampener if that were to happen but by and large, we are bullish on the IT space.
Our best picks remain there as Infosys, Satyam and HCL Technologies. On the large-cap side, obviously we like Infosys. Satyam is a story, which we think will pan out in the next one year or so. We expect pricing to come back where valuation discount compared to peers, its pretty wide, so there is some bit of scope there for appreciation. HCL Tech is a high growth story, so not necessarily in the same order but these are all different business models giving different kind of opportunities to investors.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
