Bullish on mid-cap IT stocks: Vinay Khattar

In a chat with ET Now, Vinay Khattar, HoR-Individual Clients, Edelweiss Financial shares his outlook on IT stocks.

ET Now: Why HCL Tech has corrected despite good numbers, strong visibility and attractive valuations?

Vinay Khattar: The entire IT pack has seen a very good run up right from starting with tailwinds on the rupee side to a clear demand uptick which was happening in US and then followed by the turnaround, the perceived turnaround that is playing out probably in Infosys.

After a decent run up it is quite natural for some of the stocks to retract a bit and probably arrive at a new level that is something which could be playing out in the near term and that is what you could be seeing with topping out of TCS and the strong retraction happening in HCL Tech. Our sense is that more interesting bets would be on the midcap IT side where we specifically like MindTree and KPIT Cummins and we believe that especially for KPIT Cummins the valuation is quite reasonable and you could see an appreciable upside as and when you see the IT pack coming back into favour.