Growth of IT industry would depend upon developments in US: Bonanza Portfolio Ltd

ET NOW spoke with Avinash Gupta, AVP Research Equity, Bonanza Portfolio Ltd. to get a view about secure investment channels or sectors as well as fragile sectors. To which, Bonanza Portfolio Ltd. suggested BFSI space of the IT industry and those companies which assist in setting of the power plants, the equipment manufacturer for power plants will continue to guide the markets for sometime now.

What would you treat as a defensive in a market like this? Would you go with the traditionals of an FMCG or would you take a look at other sectors because clearly in a market that seems to be panicking or reacting quite adversely to negative news and it is a reaction across the board, what do you stay with?

In a situation like this because certainly that IT is a industry, which would be defensive, especially because the growth of IT industry depend upon what happens in US and there, the scenario is looking relatively better, that is one and especially the BFSI space of the IT industry and another area that we like is the power plants, those companies which assist in setting of the power plants, the equipment manufacturer for power plants are the ones, which look attractive to us because that is one area where the investment will continue to be maintained at least for sometime as we can see right now, so these are the kind of differences there, traditional differences, the FMCG.