Dipan Mehta negative on Infosys, HCL Tech, Tech Mahindra

Dipan Mehta - Member at BSE & NSE told CNBC-TV18, "First a disclosure that we have sold Tata Consultancy Services (TCS) in most of our portfolio a quarter or two ago and few we are owning it. We are looking at opportunity to exit out of TCS. The performance at least was not to our expectations. The kind of growth rates which we are used to in TCS certainly that era has come to end. At best I think you can expect single digit growth rate for the next 2-3 years or so. Company like TCS have got several verticals and several horizontals and geographies. They would also be a softness in 1-2 verticals or geographies which will be made up by excellence strength in other the geographies or verticals. Now softness in one or two of the verticals or geographies dragging the entire performance lower and that is because the other businesses the other cylinders are not really firing for the company."

"The whole digitisation opportunity which they are taking about is not simple cut and dry opportunity and there are smaller projects over there and the projects size is also different in terms of scope of world and implementation and realisation and costing. So clearly the industry as whole as a problem in terms of driving its growth rate and it is not that volumes over there are picking significantly. Cost in India keep on growing by 8-10 percent or so. So we are negative on most largecap IT stocks including Infosys, TCS, HCL Tech as well as Tech Mahindra. However, considering that it is the large portion of the market capitalisation the best way to play it would be through select midcap stocks," he said.