Rahul Chadha underweight on IT sector

Rahul Chadha, Mirae Asset Management is underweight on IT sector.

Chadha told CNBC-TV18, "We underweight IT sector though that sector gets near term reprieve through rupee depreciation but we clearly believe that the sector, which gets nearly about 40% of revenues from the BFSI, which is where the whole problem is and nearly about 60-70% of revenues from Europe and US would be under pressure as projects gets deferred over next couple of months."
He further added, "We are already seeing layoff by big banks and it is just a matter of time when we hear a project deferral or price cuts. So I think we may not see much changes happening in the revenue growth for these companies but multiples would contract and I think the current valuations pretty much factor the upside for next one year."