Enrich your portfolio with IT stocks, says Anand Tandon

In a chat with ET Now, Anand Tandon, CEO, JRG Securities shares his views on the IT space.

ET Now: What should one do with the IT space?

Anand Tandon: The driver is the fact that there is still salary differential between people in the US and other parts of the western world and India. While that has narrowed considerably, the rupee depreciation has again given you a breather.

On the other side, the only negative is the fact that many of the developed countries have large amount of unemployed people but they do not necessarily have the desire or the ability to do the basic work.

We might like to say that we are adding a lot of value, but the bulk of the business done in India is still what the rest of the western world does not want to do. As long as that remains, we will be able to at least get the kind of tepid growth in terms of sheer numbers.

One would be buying companies which are growing 12% at 20 times because these are the only companies which will benefit from the margin expansion because of the dollar. More importantly, they are not borrowing in any significant way for the most part. Therefore, they are not likely to be impacted by a stiffened up interest rate curve. In either case, this sector is insulated and it is a way to play the foreign exchange game.