HCL Tech looks good bet on decline: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "IT pack has basically moved on the news of good results. There was good strong management commentary, the deal pipeline for most IT companies including the tier-I companies Infosys, HCL Tech and Wipro have delivered good set of numbers. So, in that sense itself the rupee depreciation does work to the benefit of the IT players, but again if you come on to pure valuations, somewhere they are trading at the higher end of their valuation band."

"I think the immigration bill also posses a headwind for most of the companies with the sector and the kind of contours that the bill might present in any form that it actually comes through over the next 2-3 months when it is passes by the US senate. So, within this space itself if one keeps a structural view and you assume that the rupee is where it is and assuming utilization levels improve and the currency benefit impact coming on to their balance sheet over the next quarter or two, I think the top rung companies, something like HCL Tech on declines looks like a promising bet. They have got a good deal pipeline, they have been able to maintain their margins, something like Tech Mahindra from the midcap space or something like KPIT Cummins," Joshi said.