Weak Q4 to be a one off case; stay positive on IT stocks: P Phani Shekhar

In a chat with ET Now, P Phani Sekhar, Fund Manager - PMS, Karvy Stock Broking, shares his view on midcap IT stocks.

ET Now: What is you call on IT space? I am asking this because a bunch of midcap IT companies have warned of muted fourth quarter earnings.

P Phani Sekhar: True. It is actually unusual. I have not seen this kind of what you may call a 'consensus concern' over a particular quarter’s numbers.

Having said that, most of the IT firms have uniformly expressed the hope that this is a one off quarter. It may not damage the structural trend.

I believe in what they said. It is because there is nothing to be feared about. Rupee is supportive. Currency depreciation, impressive growth rates in the US and bottoming out of economies of euro region, are all hinting at a positive environment. I have no reason to be panic, if I take a horizon of four to six quarters, especially, for the large cap IT stocks. I am fairly positive on this space and suggest investors to look at It names positively.