Look at IT stocks with broader perspective: Rajan Malik

In a chat with ET Now, Rajan Malik, Head Equities, Private Client Group, MF Global shares his views on IT stocks.

ET Now: If you look at the other pocket that has surprised a few people with the kind of swiftness that these stocks fell is the large-cap IT basket. What is happening here?

Rajan Malik: What has been happening is people have been using the IT sector as a defensive and have gone overweight on this sector when the broader market was falling. Now, people have realised that the US and Europe is really not growing in the manner in which they thought. The uncertainty on spending by the corporates over there would persist and that is what is creating the PE compression. One still got to see in the broader perspective. TCS is still way over where it was when the index was at 5200 last time as would be HCL Tech.