Exit Financial Technologies, says Avinash Gorakshakar

Avinash Gorakshakar, Market Expert told CNBC-TV18, "At least in the near-term as well as in the medium-term, there doesn’t seem to be any strong earnings recovery and I think the kind of penalties Financial Technologies is likely to pay for the kind of wrong doings that the management did, already some part of it has been recovered but my sense is it is better to exit because going forward couple of quarters, next two-three quarters are going to be horribly bad and with weak numbers, the stock may possibly glide down further. So better to exit and probably switch to something better, which can recover its capital maybe in a medium-term kind of scenario.""I would suggest the investor to get into something which has got stronger visibility of earnings and stocks like Sterlite Technologies which trades at the same price around Rs 88-90, could be a good switch. Over the next 12-15 months, data consumption plus the kind of story which most of the telecom companies are going to put for the 4G rollout is going to mean a lot of business for these telecom service providers especially Sterlite Technologies. So clearly, it is a painful decision but one has to take it because clearly I don’t presume any big earnings triggers for Financial Technologies in the near-term," he added.