Buy IT stocks on dip, says PN Vijay

Vijay told CNBC-TV18, "I think the pressure has got done and the way the IT has corrected stock wise, Infosys of course went through the bottom, Tata Consultancy Services (TCS) has spared, HCL has been stable, so what I am saying is that the sector has undergone some sort of a correction."

He further added, "In this recent bounce it has not participated and I think going forward, what I like about IT and it used to worry me before was the distance in the valuations that the best IT stocks commanded, the premium that they commanded over the Nifty, if an ITC or HUL command that premium, it is more easy to understand because he can almost say that these people will be reporting 20% profit growth every year for the next 100 years. You cannot say that about the IT stocks, there are inherent risks in the business."

"Having said that, I think we have some very good blue chips, Infosys, TCS and most importantly HCL Tech, which one could buy the decline because over the term, I see the US economy getting quite robust becoming the most robust economy among the four sections of the world, India, China, EU and US and these people are very well positioned. Of course the rupee is weak currency absolutely. So all these together I would buy IT on dips and there is a dip going on now. So probably get a bit more equal weight on the IT from underweight as we have been in the last couple of months."