IT stock must be bought on declines: Sajiv Dhawan

Sajiv Dhawan, MD, JV Capital Services in a chat with ET Now gives his views on the IT sector

ET Now: Do you expect large cap IT stocks in the near term to underperform Indian markets?

Sajiv Dhawan: A lot of good news has been factored into IT stocks over the last few months. The rupee depreciation has benefitted them and that helped their balance sheets. There would be some concerns if the rupee further strengthens to 48-49 in the next couple of months. There is a bit of confusion as to where the outperformers would be amongst these 4 companies: TCS, Infosys, Wipro & HCL.

So from a trader’s perspective, buy on dips in the short term. From an investor’s perspective, IT is not the best sector at the moment because a lot of the upside is already factored in and is reflected in the current prices.