Margin pressures on IT stocks, look to exit: Dipan Mehta

The Indian market ended in a mild negative off from the low point of the day supported by ITC, HDFC and Axis Bank. IT heavyweight TCS and Infosys were drags after their results. TCS ended with a loss of 4.05 percent, Infosys ended with a loss of 2.42 percent. Idea Cellular was the top loser on Nifty with a loss of 4.64 and down 7 percent from the start of the year.

SP Tulsian of sptulsian.com said that the Q3 numbers from private banks won’t be a shocker due to demonetisation and banks have more or less stabilised.

According to Dipan Mehta, member of BSE and NSE believes that investors should look to exit out of IT stocks as the IT industry is facing continuous pressure on margins and days of double-digit growth are gone. He added that the structure of the industry, costing pattern everything have come into question.

Ashwani Gujral of ashwanigujral.com said that telecom stocks are in a downturn, they may go down further and are sell on rally. He added that Nifty may remain sideways for the next week for first two day before market regains fresh momentum and breaks on the upside.