IT still remains very strong sector, says Morgan Stanley

Jayesh Gandhi, Executive Director, Morgan Stanley MF feels the IT still remains a very strong sector to play in terms of global economic recovery and IT spending in the developed world.

Gandhi told CNBC-TV18, “We had a decent weight on frontline IT stocks. We focused on the top-three names and they have worked well for us. We continue to maintain the same outlook. However, this quarter has highlighted that IT spend still continues to remain strong and IT still remains a very strong sector to play in terms of global economic recovery and IT spending in the developed world.”
“In the second half of 2012, IT was sold off aggressively and the sector underperforming but that will not be the case going forward. So, we maintain a decent weight to the sector. One should pick stocks on bottom-up basis. The sector outlook has improved significantly post the commentary as well as the results that we have seen in the last two weeks,” Gandhi added.