Buy TCS, Wipro: Devang Mehta

Devang Mehta of Anand Rathi Financial Services told CNBC-TV18, "Some of the companies which have not come with a good set of numbers like TCS, Wipro or even HCL Tech, these stocks that generally have been the darlings of the market in the last six to nine months. We know that the discretionary demand is going to come back in at least a couple of quarters. So valuations of some of these stocks had become too expensive and this correction of about say, 8-10 percent on all these individual stocks make it again an attractive proposition if somebody has a one year horizon. Because the surety of earnings is still difficult to come in the capex related sectors like capital growth or infrastructure whereas you know that relatively IT as well as pharma are probably going to come up with decent set of numbers at least in the couple of quarters when overall the earnings season wouldn’t pan out to be in a very good way."

"This seems to be good valuation buys at this point something like Wipro as well as TCS," he added.

"Wipro clearly is a contra buy though the numbers didn’t enthuse the market in a particular way but probably we feel that another couple of quarters and Wipro at this valuation trading at about midcap type of valuation would in fact outperform the overall IT sector and a couple of midcap stocks like Persistent Systems as well as NIIT Tech also qualify as buying ideas if somebody has a six months to one year horizon."