Jaipuria neutral on IT sector

Jyotivardhan Jaipuria, Head of Research, BofA Merrill Lynch is neutral on IT sector.

Jaipuria told CNBC-TV18, “We have been neutral on IT sector going into the result season. Obviously it has done better than what we thought. The reason we are neutral and not overweight IT has been that the rupee probably in the short term seemed like it will do well though my view is that probably in the later part of the year we could have again see bit of volatility in rupee. So, some of that rupee trade is getting over.”
He further added, “US is still struggling especially with all the fiscal cliff problems there. So we didn’t want to go with a big overweight in IT. The other thing of course is the other side which is that rate cuts were going to happen so we wanted to overweight the rate sensitives. To that extent IT is something which we have kept as a neutral bet.”