Would not rate IT as defensive: Ashu Madan, Religare Securities

Ashu Madan, COO, Religare Securities, in a chat with ET Now talks about the IT space.

Do you believe that going forward at least into the next few months, it is a good defensive play or should one just keep out of IT for the time being?

It was a defensive play till sometime back but now the performance will be in line with the market. On the contrary, if the overseas market corrects, the effect will be higher on IT stocks. So I would not rate them as a defensive as of now.

Till about a couple of years, last 1-1.5 years, it used to be a defensive sector but now it would not outperform the market the way it used to be in the past.

Where do you expect outperformance coming from?

To pinpoint a particular sector or a stock in this kind of a market is very difficult. I am a buyer at dips at current price, I am not too bearish. Probably I will go with the Nifty or the frontliners. So I will play the broader market in a holistic way than picking up a sector or a stock.