Positive on Infosys: Shashi Bhushan, Prabhudas Liladhar

Shashi Bhushan, Senior Research Analyst, Prabhudas Liladhar in a chat with ET Now talks about Infosys and other IT stocks.

Can you highlight - from the standpoint of the Budget - which are some of the IT stocks that you would be positive on?

Among the tier 1 names, our pecking order is HCL Tech, Infosys and TCS. We expect volume growth of 27-28% in FY12 and the realisation improvement of 1-2%. For tier 1 names and for tier 2 companies, we are expecting a volume growth in the range of 21-25% with a slightly higher realisation improvement - 2-4% - depending on how the business from the new contracts is going to come.

So that is the overall expectation. We continue to remain positive on the IT space with preference to tier 1 names. The margin levers and the exposure to different geographies and different service lines is much more broad based for tier 1 names.