Limited downside in IT sector: Dhawan

Sajiv Dhawan of JV Capital Services is of the view that there is a limited downside in IT sector compared to the rest of the sectors.

Dhawan told CNBC-TV18, "I stay neutral on IT space. I think its one sector, which has relatively done well in the markets. Stocks like Infosys given good profit if one has bought from their lows and they are not even cracking at the current levels between Rs 1,800-2,000 range, there is no aggressive selling at the same time there is no real buying. I think it’s been the sector relatively under owned but more if one do see an upward revision guidance and some positive sentiment, I think a lot of investors who are sitting on cash may try and shift some of their money to this sector because in the current market software does look more defensive and more importantly if the markets do correct the downside in the sector probably is limited compared to the rest of the sectors but the fact that there is less speculative activity in these stocks at this moment.”

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.