IT stocks should continue to do well in 2014: U R Bhat, Dalton Capital Advisors

In a chat with ET Now, U R Bhat, MD, Dalton Capital Advisors, shares his views on the IT space. Excerpts:

ET Now: IT stocks, in general, have had a great 2012 and 2013. Would 2014 could be another good year for IT?

UR Bhat: Yes; IT should be the star of 2014 as the US economy is doing well. Since the US is the basic market for most of the IT companies, with its economy doing well, there might be a pickup in their earnings growth.

Moreover, if taper goes through in 2014 in full, which is highly likely, certainly the dollar would strengthen and hence the rupee might weaken a bit, which might add one more layer of comfort as far as investing in IT stocks is concerned.