Buy midcap IT names on further correction, says IV Subramaniam, Quantum Advisors

In a chat with ET Now, IV Subramaniam, MD & CIO, Quantum Advisors, shares his view on midcap IT stocks.

ET Now: Is it a good time to buy midcap IT stocks? It is believed that the weak fourth quarter earnings would be an one off affair due to cross-currency headwinds (especially due to a fall in euro). Would you like to buy Persistent, MindTree or KPIT?

IV Subramaniam: We are not averse to owning midcap stocks and we do like IT space. Having said that, despite the recent fall, we would like to wait for further correction before we buy into these stocks.

We like most of the IT names you mentioned; we like their managements and business models. But from a valuation standpoint, I would still buy midcap IT stocks only at lower levels.