Deven Choksey positive on frontline IT space

Deven Choksey of KR Choksey told CNBC-TV18, "Within IT, the frontline IT companies are basically looking at a utilising their cash and going for the inorganic growth. This is something which is happening because the moderation in the current business model is asking them to start looking at opportunities elsewhere and that is where I like the clear strategy of Infosys vis-à-vis others. No doubt Tata Consultancy Services (TCS) has been on that particular path already but very clearly these two companies are showing the kind of prospects as far as acquiring some of the target companies from the global markets."

"Timings could not be bad either because the slow down and the availability of the opportunity may be in the digital space, these companies could possibly acquire some of the good companies into the portfolio. They have cash with them, so that is one of the biggest positive," he said.

"So I remain more positive but I do not know whether it would jump into at one go, may be would look at the opportunity as they come by and then probably consider them adding into the portfolio. Certainly corrective downside in the market would be the opportunity to add them into the portfolio particularly the first two frontline IT companies."

Disclosure: Analyst did not recommend any stock per se but at the same time given some directions and would request investors to look at the fundamentals before adding in to the portfolio and consult their advises.