Gaurav Doshi, VP - PMS, Morgan Stanley is overweight on IT space.
Doshi told CNBC-TV18, “The rupee report talks about the fact that while we acknowledge that things are extremely oversold in the near-term they are not calling for 56-56.8 right now. But the fact is they believe that the trend is going to be in this direction.”
He further added, “No doubt, IT has been a sector we have been overweight on in the past and we continue to be overweight on. But unfortunately the stocks are not kind of displaying the resilience that we would have expected with the rupee at 55-56. But having said that we continue to believe that this sort of rupee dynamics will add some sort of a cushion to the earnings of these IT companies and that gives us some sort of comfort and therefore we continue to stay overweight. But I don’t think the tactical trade is playing out or working as of right now, especially given yesterday that IT sector which was one of the weaker sectors in the market and the rupee was also at 55 levels. So it’s a strain situation tactically.” Disclosure: My firm, clients and I may have holding in the stocks or sectors discussed.
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