Mkt experts wary of IT sector outlook post Obama win

Dipan Mehta, Member BSE and NSE said, "IT is one sector that is facing the maximum challenges at this point in time." He feels there could be protectionist policies in the US, which could impact the demand scenario and fears technology spending would contract in the current year and the next year as well.

"There are major challenges for technology companies. We have seen reversal in the rupee as well which touched Rs 50 to a dollar mark and is now back at Rs 46.80 to a dollar."

Mehta feels tech companies are in for some tough times going forward. He advices investors to be slightly underweight in that segment and buy the stock only when they are at extremely attractive. "Valuations maybe where PE multiples are in the region of eight-nine times or thereabout."

"Selectively some of the midcap tech stocks which are very niche areas may continue to prosper. But by and large the sector as a whole would have several question marks from an investor point of view."