TCS, Infosys would be short-term trade: Sajiv Dhawan

In a chat with ET Now, Sajiv Dhawan, MD, JV Capital Services, shares his views on large-cap IT stocks.

ET Now: Does it make sense to buy large-cap IT stocks on every decline because of the currency advantage?

Sajiv Dhawan: To an extent, yes. If you are going to do that, maybe TCS, Infosys but that would be a short-term trade. The rupee is likely to remain volatile. It has moved quite amazingly actually one way over the last couple of months and it is going to create a lot of problems and as you said, it is a huge problem for foreign institutional investors.

It is great for people bringing money into the country but a serious problem for everyone else but if you are playing on the rupee side, then you need to have strict stop losses in. The trend can reverse at some stage. It is not going back to 4700-4800 in a hurry but a couple of percentage points here and there is very likely up or down over the next few weeks.