Fall in rupee keeps IT stocks firm: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shared her views on the IT Sector.

ET Now: Do HCL Tech earnings reaffirm that things are looking good for the IT sector?

Deven Choksey: IT and pharmaceutical sectors are export driven segments. They are largely dependent on the forex inflows. Where rupee stands depreciated, a major amount of the upbeat-ness is seen in both the sectors. Most of the fund managers also look at these two sectors from defensive point of view. Whenever the cash is generated, they would like to pass this cash into defensive stocks like IT and pharma. With the rupee falling back to 61 levels again, the positive impact onto the margins of the IT companies could be anywhere between 30 to 40 bps on a quarterly basis. This could possibly be the reason for many of these IT stocks to remain a little firm.