'Midcap IT stocks will see 4-5% growth'

ET spoke with Nischal Maheshwari, head research, Edelweiss, to get his views on the outlook of IT stocks.

What's your sense on the midcap IT space particularly Mastek and Tech Mahindra, which have a large UK exposure?

The coming quarter would be okay for them but definitely midcap stocks do not grow at the same pace as the large caps. So, close to around 4% to 5% kind of a growth will be there. But having said that, euro worries are definitely out there for somebody who has got a large exposure like Mastek on to the European space and it's going to impact their business outlook definitely. The second worry about these stocks is the exposure to euro. Besides the business, they face the currency risk. We have to go to individual stocks and understand how they do their hedging part, but if sufficient hedging is not there, you may see some amount of a slip in numbers happening there at the current quarter itself.