Devang Mehta cautious on IT space

Devang Mehta of Anand Rathi Fin Svcs told CNBC-TV18, "We would be a little cautious on the IT pack right now, there are profit warnings coming from largecap companies as well as some of the midcap companies and we feel that valuations are a little rich. I will not say for the entire sector but for some of the stocks, we don’t see discretionary demand coming back in the near future."

"We feel IT pack is one where you can churn your portfolio, so you can reduce your exposure and come to something in the capital goods universe or something to do with NBFCs or private banks where probably if the capex theme starts going forward in the next one-two quarters, it would be big beneficiaries," he said.

Disclosure: It is safe to assume that his company and his clients might be having positions. Analyst does not have personal positions in the stock but it is safe to consult investment advisor before investing in the stock.