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Jul 06, 2013, 02.38 PM IST | Source: CNBC-TV18

Buy HCL Technologies: Gautam Sinha Roy

Gautam Sinha Roy of Motilal Oswal Securities recommends to buy HCL Technologies, and second preference should be TCS in technology space, he adds.

Gautam Sinha Roy of Motilal Oswal Securities told CNBC-TV18, "Within the IT space, there are couple of factors, which should continue to impact performance of the space. One is, the rupee depreciation, which should help the business models of these companies and improve profitability over a period of time."

He further added, "Apart the discretionary spend growth that we are expecting in the beginning of the year doesn't seem to be coming back as has been highlighted by Accenture again in its latest release. So, between these two diverse factors, we like commoditised players - HCL Technologies where we expect earnings per share (EPS) growth to be strong. Valuations are also attractive. So, HCL Tech will be our top pick heading into the results season."

"We would not expect any positive surprise from Infosys as of now because of delays in recovery in the discretionary spend environment. So, we would continue to be positive on the space, but prefer HCL Tech and Tata Consultancy Services (TCS) as a second preference," Gautam Sinha Roy said.

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