Nilesh Shah, MD & CEO of Envision Capital is of the view that IT space is likely to remain underperformer for the next three-six months.
Shah told CNBC-TV18, "I would still continue to be cautious on IT sector. What is happening in the sector is more of a relief rally, investors need to use these kinds of rallies to cut positions and cut exposures at every higher level. Another 5% move and the entire pack is going to look reasonably expensive and the rupee has started to give up some of the gains, but it is still a long way off from where it was three months back or six months back."
He further added, "What is more disturbing is volatility and most of the top tier IT companies would not be able to capture this volatility and be able to manage their dollar portfolios. So I think that probably in the short-term, there are some kinds of gains to look forward to but probably I would still continue to be very cautious. I expect IT to remain an underperformer for the next three-six months."
