If you own IT, stay invested: Gaurav Doshi, Morgan Stanley

Gaurav Doshi, Equity Specialist, Morgan Stanley PWM, in a chat with ET Now, gives his views on the IT sector.

IT stocks are growing, but is IT expensive?

IT is expensive which is why actually on a model portfolios we are tactically underweight IT. We believe valuation is the only thing that is really holding us back. So, our view is if you own IT, stay invested but we would not really be chasing IT especially the large caps at this level. We would definitely wait for better entry opportunities and we feel that this is a sector that could now face issues in terms of wage cost inflation and attrition. Even the currency we think will now slowly start to impact earnings of these companies. So, tactically you may get a better entry opportunity into IT.