IT stocks should be a good defensive: Prateek Agarwal

In a chat with ET Now, Prateek Agarwal, CIO, ASK Investment Managers, shares his views on IT stocks.

ET Now: After the disappointment we have seen from Infosys last week, what is your call on IT stocks?

Prateek Agarwal: While Infosys has cracked on account of projections of over Q4. The Q3 earnings are actually good to our mind. To some extent we do believe that the muted guidance was more on account of being conservative. So, we believe this is the part of the market that should hold up quite well. Short term hiccups notwithstanding, tends to benefit quite a bit by rupee depreciation.

Infosys may be trading sub-16 times 2013 which should be deemed as cheap. We stay put in this space because our outlook for the currency over the next 12 months is not very strong. So, in a weakening currency environment, we believe IT should be a good defensive.