Expect better volumes growth for the IT sector in this financial year: Ajay Bodke

In a chat with ET Now, Ajay Bodke, Head-Investment Strategist & Advisory, Prabhudas Lilladher shares his views on Infosys and IT stocks.

ET Now: You are bullish on Infosys but the fact that BG Srinivas has decided to quit, it clearly means that there is a issue the employee morale is not high and sad but true but Mr. Murthy has not been able to swing things around?

Ajay Bodke: We are somewhere close to the of announcement of a new CEO and meritocracy rules in Infosys and hence the exit of various executives who possibly have realised that they are not in the contention for the CEOs job are calling it quits. As far as Mr. Murthy is concerned it would too early to pass such a harsh judgement because when Mr. Murthy came in we had given a couple of years to him and let us not forget that the global environment on the margins is improving because market for IT services US should be roaring at around 3.5% GDP growth.

Power is expected to come back to IT majors, we are going to see a volume growth better than the last financial year for the IT sector as a whole and once these building blocks are in place we do see Infosys along with Wipro, Tech Mahindra and Mindtree as the top buys in the IT sector in the medium term.