Ratnesh Kumar, Managing Director & CEO of Standard Chartered Securities told CNBC-TV18, "While IT sector has outperformed, about four-five months back, we gave a very strong call to switch from consumers to IT and that call is still very good because if one looks at IT sector, while it may have outperformed, the valuations are not necessarily in the excess zone and one can get the frontline IT stocks in the mid-teens kind of valuations."
"While some amount of rupee depreciation might have been built into the forecast, a lot of it is not. So one might have almost up to 60/USD built into the earnings forecast but not 63-64-65/USD and what is certainly not built in is the fact that there could be demand recovery, dollar revenues might be getting better," he said. "There are still earnings forecast itself which might go up, so the current valuation which are not excessive might look further more attractive and the demand environment itself might surprise on the positive over the next 12-18 months. So I would still be positive on IT over the next 6-12 months."Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
