Buy HCL Tech on dips: PN Vijay

PN Vijay, Portfolio Manager, www.askpnvijay.com advice traders to remain cautious on IT sector. One can buy HCL Tech on dips.

Vijay told CNBC-TV18, “There is again lot of pessimism about IT sector post Infosys and I am advising caution on IT sector because of two reasons. Clearly one is not so sure how growth and capital expenditure in the US will pan out going forward. One had taken that to be robust a few quarters ago but that is not happening and second is the volatile rupee. So all these things considered, one is not looking at fresh exposure to IT.”
He further added, “At some time Infosys would come back into the buy list. Right now the only stock one is looking at seriously is HCL Technologies for two reasons; it is not so BFSI centric as Infosys, TCS and Wipro and also geography wise it’s much more spread out. So probably a buy on HCL Tech at dips. Others just keep quiet about them and if you have them hold them because they have fallen but surely no fresh purchases and concentrate on infrastructure and banking and auto stocks. If at all Indian stock market is going to go up it will go up only because of these sectors going forward.”