MAT hike will be negative for IT: Madhusudan Kela

Madhusudan Kela, Reliance MF in a chat with ET talks about the IT, pharma and FMCG sectors after the MAT hike.

What is your overall sense on the IT, pharmaceutical and FMCG companies, given the MAT rate hike?

This will be particularly more negative for sectors like IT and may be infrastructure which will come under the purview by and large. The overall impact could be lets say 2%-3% of the profits and there will be definitely a disappointment in the DCF valuation. As long as the broad atmosphere remains positive I don’t think this minute working of numbers will determine long term value of these companies.