Sandeep Muthangi, VP Research at IIFL Institutional Equities told CNBC-TV18, "We have had a brilliant rally in IT stocks over the past one year and in some stocks it has been two-three years. In this whole rally in IT stocks in the past one year – a large part of it has been driven by earnings per share (EPS) upgrades and the large part of the reason for the EPS upgrades have been the currency and the rupee depreciation etc.”
“I do not think we have seen this kind of a demand environment anytime since 2008-2009. We have had waves in IT; prior to 2009 we had the ERP wave and then much earlier the dot com and the Y2K wave, but if you look at the demand environment now, this is a very strong demand environment probably the best in the past five years and this is more structural than what we have seen in the past couple of years, ”he added.
“I am still positive on the IT space. I think this good demand growth is going to continue for the next couple of years. In terms of my pecking order, I still prefer HCL Technologies and Wipro among the top four. So, I would like people to add to these stocks.”
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