Buy IT stocks on dip: Nitin Jain

Nitin Jain of Edelweiss Securities told CNBC-TV18, "If one looks at some of the companies in the IT sector for the first time particularly in the largecap space one is seeing valuations which are actually cheaper than the overall market. These are very high quality companies going through some difficult times but from corporate governance point of view, from a return ratio point of view, the opportunity space point of view, these are very attractive places to be in and hence we have been contrarian buyers in this sector."

"Mindtree benefits a lot because of rupee depreciation. Their standard policy is that they hedge only around 50-60 percent of their next six month receivables which means that the rupee move from 55 to 60 actually is a huge delta from bottom-line point of view. The stock is hardly trading at around eight to nine times forward. One can easily expect 25 percent to 30 percent appreciation in that stock over the next six to twelve months kind of a horizon," he said.

"HCL Technologies is a consensus call. Everybody has been bullish on the stock probably delivering growth better than most of its peers in that space and is making a 52 week high. These are at least 6 to 12 months view, so if one has a shorter horizon then one has to wait and buy these stocks on dip."