Prefer Infosys, TCS, Tech Mahindra: Rakesh Tarway

Rakesh Tarway of Motilal Oswal told CNBC-TV18, "We prefer Tata Consultancy Services (TCS), Infosys, and Tech Mahindra. Infosys is still trading at some 17 times FY15 numbers which is at a discount to Sensex valuation. So, if the growth comes back to something like 20-21 percent that will be more than the Sensex valuations, it deserves at least some kind of premium to Sensex. It is roughly trading at Sensex valuations and that discount with TCS will bridge with time whenever the growth comes back. So, we prefer Infosys, then TCS, then Tech Mahindra because Tech Mahindra has a small market cap among the big five."

"Tech Mahindra has a market cap of Rs 45,000-50,000 crore and others are more than Rs 10,0000-15,0000 crore; almost all of them. So, you have a decent up move in Tech Mahindra for a long-term investor but at the same time to have some kind of foothold in BFSI will not be easy. So, that is what market will be watching out for," he added.

"The stock has done extremely well for last one year period. So, there will be some consolidation in Tech Mahindra but it is going to do well. It has reasonable valuations, low market cap, good brand, it has merged Satyam with itself, it has size now; it has a critical size, so that is going to do well. So, we prefer Infosys, TCS and Tech Mahindra; that is our three top picks in IT."