Infosys is a value pick, buy it on dips: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Chief Portfolio Strategist, Prakash Diwan's Wealth Circle, shares his views on Infosys and TCS.

ET Now: In the near term, do you think there is still some merit in going short on Infosys and going long on TCS?

Prakash Diwan: Not really. These stocks would gradually start finding their spaces in portfolios. TCS is more of a current momentum kind of a play, whereas Infosys is a value pick. Infosys could lose some more ground due to the headwinds like discretionary spends in the US. Even locally, the entire exemption on the particular label has been taken off by the Karnataka Government and it could impact some of the IT companies in a significant way in terms of sentiment.

So, both the stocks would remain under some sort of a stress. There is no sign of pair trade as yet, while going long on TCS and going short on Infy. Infy starts becoming a value buy at Rs 150 lower than the current price and that is when you could probably start looking at seriously.