Invest in IT space, says Anand Tandon

Tandon told CNBC-TV18, “In IT, top picks are the ones which don’t have controversy around them. Again it’s a question of time frame, near term they are the like ones that will likely continue to outperform. The ones that are fallen off will give you better returns but you will need to wait for a longer period of time. Its mean reversion that one is playing for and therefore its only a question of which you buy when.”

He further added, “What's happening in the sector of course is a lot more interesting simply because there are headwinds that are coming up at the same time companies which are prepared to go flat out and reduced margins are able to gain market share. So what may appear to be good strategy may eventually lead to a drop in margins and commoditization of the entire industry and that is something that is inevitable except that one is hoping that it will happen over a 5 year period rather than a 5 month period. So long as most companies don’t have debt they continue to earn in foreign exchange and they arbitrage between Indian incomes and global income continues. I think the sector is still a place that you need to put your money in especially in uncertain times like we are in right now.”