PN Vijay believes 2013 will be good for IT space

PN Vijay, Portfolio Manager, www.askpnvijay.com believes 2013 will be a good year for IT space.

Vijay told CNBC-TV18, “I don’t think IT will get into the back burner because Wipro is not such a significant stock when you look at its free float, is capacity to turn the fortunes of the sector are quite limited. If you look back Infosys really turned the sentiment around in IT by coming up with some really unexpected statements and numbers and then Tata Consultancy Services (TCS) quickly followed with some strong numbers. Then you had HCL Technologies which is one of the new favourites in the market also coming up with robust numbers. Now all these three in a row with good numbers and good confidence statements have formed a very strong base for the IT sector.”
He further added, “I don’t think the IT sector is in any threat of changing directions just because of Wipro. But also the markets are hyper sensitive to result slight negativism in the results. We saw that in Exide Industries for example and even HDFC Bank, it didn’t do too badly but market didn’t like it too much. So it is very important that one understands that the market at this level is hypersensitive to small changes in earnings expectations. So one has to be very watchful but on the whole there are enough cues which came in from Infosys, TCS and HCL Tech to make me believe that this will be a good year for IT stocks.”