Prefer IT stocks for long term: Ajay Bagga

Ajay Bagga, Market Expert told CNBC-TV18, "Market is taking a conservative stance in advance of the earnings and the management guidance coming in IT. Some foreign brokerages have put reports out with deteriorating margin scenario but overall if you see the Accenture commentary and even the Gartner report they are talking about a very steady growth in order pipeline. So, it is getting overdone but we will have to see and unfortunately Infosys results come in on a holiday. So, market will continue to be sideways in terms of IT players in advance of that.""Personally, it is overdone. I would be buying, I am long on the IT majors and you will get better commentary going ahead because it is very strong correlation to the US economy. So, in a very reductionist manner you put that in and the way they are changing the business models, that is good. Second, with the cash holds that large IT majors are sitting on you will see more M&As coming in, that will also add value," he said.