IT space to underperform: Kotak Mutual Fund

Harsha Upadhyaya, Head of Equities at Kotak Mutual Fund feels that IT space is likely to continue to underperform due to challenging business outlook and issues in terms of profitability.

Upadhyaya told CNBC-TV18, "What happened in the first quarter of calendar year is somewhat reversing this quarter. While in our portfolios we maintained underweight position on IT mainly because of the challenging business outlook and also issues in terms of their profitability."
He further added, "We were hurt little in the first quarter of this calendar year but that seems to be correcting today. We continue to hold the underweight position, we believe that things are going to be patchy for this sector. There could be stock specific opportunities depending on the valuation, depending on the business outlook, but as a sector this is likely to continue to underperform."