Vibhav Kapoor of IL&FS told CNBC-TV18, "I am surprised because we never expected the IT sector to behave the way it did last week. The only thing one can say is that valuations have gone up a lot, the stocks has done well, IT index has gone up in a huge way and so some money is been taken off the table apart from that I cannot find any reason for IT stocks to go down the way they have or correct the way. So it’s probably just a correction in a big bull market which is happening there.”
He further added, “The rupee definitely looks to be depreciating a little more from here maybe another 2-3 percent, so there is no problem on that side. The US economy is doing well; some times you just wonder and I don’t know, it’s too early to say whether this whole thing about disruptive technologies coming into technology for example Cloud etc is something which is having some impact at the back of investors mind whether this can disrupt the business model of the Indian companies to some extent. I am not sure, it is too early to say but definitely at the moment IT is still a good buy on corrections and it is a bit surprising that the way these stocks have reacted."
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