Buy IT stocks: Manish Sonthalia

In a chat with ET Now, Manish Sonthalia, Senior Vice President-Fund Manager, Motilal Oswal Securities, talks about IT stocks.

Would you say IT is the new defensive considering all the bad news and earnings disappointment seems to be priced in the stocks already?

IT could be the new defensive and there could be money moving into IT given the fact that it has underperformed some degree of under ownership. Yes the Cognizant numbers were not taken to be very good but commentary on the guidance on the management talks about 28% in dollar terms and if that was to be exceeded somewhere close to 30% top line growth. So if that was to happen for Cognizant, then obviously you could find names like Infy, TCS etc. where money could be actually moving in.