IIFL Capital underweight on cement, IT space

Deepesh Pandey, Head of Investments, IIFL Capital is underweight on cement and IT space.

Pandey told CNBC-TV18, "We are seeing some moderation in top-line growth in some of consumer sector companies, so that is one sector which will lag in a rising market. IT services also of late specially amongst the large companies this quarter is turning out to be quite weak. Therefore amongst the large cap companies, I would stay underweight in that segment. Next year would possibly turn out to be much less positive versus analyst expectations. We have seen Cognizant giving a reduced guidance for next year."
He further added, "Some of these debt laden asset heavy companies in infrastructure segment remain avoidable for sure, because I think they will take a lot of time in terms of repairing their balance sheets. Cement I think also has had a fair run. Cement prices have been correcting of late and valuations clearly look very high at very high profitability. So that is another sector where I would stay underweight."