TCS continues to remain our top pick in IT space: Dr Tirthankar Patnaik, Religare Capital Markets

In a chat with ET Now, Dr Tirthankar Patnaik, Director, Strategist-Institutional Research, Religare Capital Markets Limited, shares his views on Tata Consultancy Services Limited.

ET Now: What is your view on Wipro which just came out with good set of numbers and has beaten street estimates on all accounts? What is your pecking order now. Is TCS still on the top slot?

Dr Tirthankar Patnaik: Well, TCS continues to remain our top pick in this space. Last year, we were essentially pushing midcaps over large caps. This time around, the valuations for the large cap universe seem to be completely reasonable. We are getting more and more positive on the space. So, TCS is at the top of our pecking order.

In IT sector, growth managements are definitely cautious but every large stock has beaten on margins. So, that is a positive sign and we have a positive view on tech spending.

Tech spending levels in the US are at about 11-year lows. Hence, at this point of time there could not be much more downside to volume growth which remains the key for the IT space going forward.