IT companies like TCS, HCL look good for long-term hold: Sudip Bandyopadhyay, Destimoney Securities

In a chat with ET Now, Sudip Bandyopadhyay, President, Destimoney Securities, shares his views on the IT sector. Excerpts:

ET Now: What about your view on the IT stocks?

Sudip Bandyopadhyay: IT is one sector that has given good returns to the investors over an year. There is a huge recovery that has happened in US economy; it suits well for most of the IT companies. A majority of the latter's income comes from the US markets. Hence, that is one positive development.

An unfortunate, yet positive development for IT is the rupee depreciation. IT companies have significantly gained from rupee's downfall.

When both of these factors are put together, the scenario looks good.

The well-managed IT companies—like TCS, HCL—have really outperformed. Even at current level, TCS and HCL look good for a long-term hold. Regarding Infosys, one has to see its quarter result and then take a call. There is an uncertainty about the turnaround in Infosys' fortunes. They are quoting at a very reasonable price compared to a TCS or an HCL in terms of the PE multiples. However, one has to see the trend before one can take a call on Infosys or Wipro.