A Loganadan bullish on IT space

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » Nifty BSE | NSE 28/05/12 Are Mutual Funds betting on Nifty?

Ajay Loganadan of HSBC Private Banking is bullish on IT space.

Loganadan told CNBC-TV18, "I will stick to sectors that we remain very bullish on are one is IT. From standpoint of and you saw a very significant correction from April last year going back to April 2007 to about 2 months ago, where IT just got beaten black and blue primarily because of the appreciation of the rupee. Now you have seen the reverse effect, where the rupee has depreciated a good 6-7% and that starts to benefit for IT. So this is per se contributing largely to our economy and we believe that in a very competitive global environment outsourcing is going to continue and that is why we believe IT from a long-term perspective growth rates are going to be maintained fairly healthy 15-20% and given the correction that they saw over 12 months that is a good place to be."

He further added, "The whole infrastructure story in India continues to be very strong story that you play out over the longer-term, we are really telling our customers to look long-term and there are opportunities. We have seen significant price erosion, so capital goods is another sector, where we see strong order books in place but obviously interest cost are going up and that is going to hurt margins. But from a longer-term perspective that is another sector that we do like."

"In telecom the penetration levels, the kind of growth rate that we can expect to continue for years to come obviously not as strong as we have seen over the last few years. But that is another sector that we continue to be overweight on."

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