Won’t recommend going underweight on IT: Rajesh Jain, Market Strategist
Rajesh Jain, Market Strategist, in a chat with ET Now talks about IT stocks.
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| Rajesh Jain, Market Strategist, in a chat with ET Now talks about IT stocks.
In terms of IT stocks particularly can you give us an inside? Are there any specific picks within that sector or would you say steer clear from that as a whole?
I would hardly venture to say that go underweight on IT because you have a precedent before you. The USA went through a recession and the companies have done an excellent job of managing the markets there. If anything, two quarters ago we started talking of how great the orders were looking at and what was the billing rate upside and how the margins were expanding. Apart from some short term concerns on the European order books, I would not really worry much about IT.
Is it not too much of a worry considering a lot of their business does come from the European market?
No, I would not worry at all. First of all, people who have been tracking the IT sector for the last decade or little more than that would remember that Europe was the first geographical diversification out of the US business because typically the Y2K started there and then you started diversifying into Europe and Australia and after that we have seen new geographies being tapped.
The companies would do well. First of all, I do not think not many of them will have more than 20% dependence on euro.
In terms of IT stocks particularly can you give us an inside? Are there any specific picks within that sector or would you say steer clear from that as a whole?
I would hardly venture to say that go underweight on IT because you have a precedent before you. The USA went through a recession and the companies have done an excellent job of managing the markets there. If anything, two quarters ago we started talking of how great the orders were looking at and what was the billing rate upside and how the margins were expanding. Apart from some short term concerns on the European order books, I would not really worry much about IT.
Is it not too much of a worry considering a lot of their business does come from the European market?
No, I would not worry at all. First of all, people who have been tracking the IT sector for the last decade or little more than that would remember that Europe was the first geographical diversification out of the US business because typically the Y2K started there and then you started diversifying into Europe and Australia and after that we have seen new geographies being tapped.
The companies would do well. First of all, I do not think not many of them will have more than 20% dependence on euro.
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