Nitin Rakesh positive on IT space

Excerpts from Bazaar on CNBC-TV18 Watch the full show » Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty?

Nitin Rakesh , CEO, Asset Management Business, Motilal Oswal Securities is positive on IT space.

Rakesh told CNBC-TV18, "Overall the IT space in tandem with the global demand has reacted very positively. In between there were some concerns about currency impacting them negatively but I think the global recovery is fairly strong, we are seeing them in almost every IT company's commentary coming out. Based on our sense, the cost cut in a lot of the global major's especially financial services, insurance and banking were pretty severe but they are recovering back because they are seeing growth coming back."

He further added, "Overall we are positive on the IT sector because largecap names are almost at lifetime highs, Infosys is close to its all time high and so is Wipro . So it's only logical and likely that the action shifts to midcap space, within their own niches are doing fairly okay as well. So overall this space will continue to surprise us because of the pace of recovery in the underlying sectors and companies that they service. Currency continues to be wild card out there but right now the focus is more on the growth rather than the currencies and I think we continue to stay very positive on that sector."