IT continue to outperform: N Shah

Nilesh Shah of Envision Capital feels that technology sector is continued to outperform from here.

Shah told CNBC-TV18, "We are in an environment where basically we are clouded by a lot of certainties both at the domestic front as well at the global front and here we have technology as a sector as well as Infosys a company, which is not only providing earnings visibility but is also willing to up that guidance. Therefore it gets into the zone of 20-25% earnings growth, which I think is outstanding in the current environment and outstanding from all kinds of standards. So we are going to see the sector as well as the stock continue to outperform from here and as we roll over one or two more quarters we would start talking about the next year’s earnings. So from that perspective if you were to keep 6-12 months horizon in mind, then I think the sector is poised for huge amount of -outperformance."

He further added, "In addition to that if we look at some mega trends over a period of three to four years, I think we have a situation where that whenever technology and dollar linked companies with dollar linked revenues and when they start doing well we find everything else under performing and vice a versa. I think we are back to that situation, where companies with dollar-linked revenues are expected to outperform and within that trend, I believe that technology is going to be at the forefront of that trend change."

Disclosures: It is safe to assume that analyst and his clients may have an investment interest in the above stocks/sectors.