Rakesh Arora underweight on IT space

Rakesh Arora, head of research of India at Macquarie Capital Securities told CNBC-TV18, "We have been maintaining an underweight stance and a little bit negative view on IT space, though rupee has been moving in the positive direction for them and that is helping them, but we are worried about two things. We are worried about the Immigration Bill, which we think can have a huge negative impact and shave off almost 20 percent plus of earnings."

"Number two is that until and unless we are in the right segment probably growth and demand may not be as high. We have recently seen some companies like Accenture, Cognizant cut guidance. So demand scenario is not looking that great despite US picking up. Apart from rupee everything is moving in the negative territory for IT companies and stocks have been more or less stagnant. So I would say that no real hurry to buy these names now," he added.