FIIs most familiar with IT: Vikas Pershad, Veda Investments

ET Now spoke to Vikas Pershad, Founder & CEO, Veda Investments, on his views on IT sector.

What about the IT space because that has been lending some sort of support to the market on the street?

Personally I am not doing too much in the IT sector at present. However, I know that if you look at the Indian market over the past decade or so, the IT market is really what pulled in a lot of foreign investors into the Indian story, the IT sector and Reliance Industries.

So if you look at what the FIIs are doing, they want to be in India, they like the longer term story but a lot of people have gotten burned over the past three years, in 2008 they did and in the last six months because in July-August-September of last year, you remember how the market did in September and then over the past six months, they have lost a lot of money.

So they want to be in India but they want to be in the sectors that they are most familiar with, which is the IT sector because they have been following that story for 10-12 years now and they are staying away from most of the mid-cap ideas. That is perhaps more exciting, so that’s why the FIIs are in it and that’s why a lot of people are buying IT but I am not doing too much in it right row.