IT will make a strong comeback: G Chokkalingam, Equinomics Research & Advisory

In a chat with ET Now, G Chokkalingam, Founder & Managing Director, Equinomics Research & Advisory Pvt. Ltd., gives some stock ideas.

ET Now: What are your top three stock ideas at this point?

G Chokkalingam: I believe in Reliance Industries for couple of reasons. One, there will be lots of unlocking money from retail and telecom. Two, the management has borrowed lots of dollars and rupee exchange rate exceeded around 64-65. So they will definitely make lots of money from tertiary operations.

My second idea would be RComm. It is quite costly in terms of valuation but tactically, I see good upside in the stock. I firmly believe that selling of assets would continue. All these asset sale would generate a lot more cash and reduce debt and tactically, it could be a great opportunity.

Thirdly, I would pick from the IT basket. I firmly that rupee will again come back to 60 against the dollar because export is growing only at around 2% year-on-year. Since the Lehman crisis, RBI has sold close to $70 billion in the market. Now they have to buy back dollars to shore up the reserves. Hence I believe that IT would once again come back in a fancy way. Within IT, I would favour midcap ones like Sasken. It is a zero-debt company, very attractively priced. I believe that Sasken can give very good wealth creation opportunities over the next one to two years.