Negative on Infosys, HCL Technologies: SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "I am quite apprehensive on the results of all the big IT companies and more specially in Infosys because the kind of development which we have seen with Narayana Murthy coming in, one should not expect any kind of magic happening in the Q1 numbers. Things are definitely going to remain bad and generally in weak rupee we see these stocks taking a little up move maybe because of the currency gain is always positive for them. Specially when the overall market is weak we always see these stocks performing well because it has taken more as a defensive bet and same thing has been seen today for Infosys and HCL Technologies.

HCL Technologies is ruling at a 52-week high. I won't be keeping the positive stance on all the IT companies because generally the currency gain is not seen much because majority of the receivables are hedged by the company and the benefits are not seen flowing in because no company takes that exchange risk by remaining uncovered and all sort of things," he said.
He further said, "So, I am keeping cautious to negative stance. Even in case of HCL Technologies I don't think that one should look to go beyond Rs 830 and those who are holding the long positions should exit from that and one should remain away from taking long positions on the stocks like Infosys, TCS or Wipro for whole of this month."