Persistent Systems good buy, says Kunj Bansal

Kunj Bansal of Centrum Wealth Management told CNBC-TV18, "For the short-term traders it will continue to be a high risk market and one have to trade with stop losses but for the fundamental and medium-term long investors some good buys have emerged. Therefore, within the defensive sector I will stick to midcap IT, of course in largecaps also there are lot of ideas."

"Persistent Systems in a midcap IT space expectedly gave weak numbers for March, so the fact that the March quarter numbers are also out, the uncertainty is over on the quarter. It is likely that the company could continue to report subdued numbers for the first quarter this year as well, the June quarter but within that the stock has corrected from the peak of almost 19-20 times forward at its peak of Rs 1,000 odd; Rs 960 was a 52-week high to currently at about 14 times forward PE and growth of close to 20 percent annualised is possible. Also the fact that the rupee has started its journey downward which is likely to sustain that way. So among the export oriented sector within IT and within midcaps Persistent Systems is a good buy," he said.