According to Ajay Srivastava, CEO at Dimensions Consulting, one may prefer IT stocks on dips.
Ajay Srivastava, CEO at Dimensions Consulting told CNBC-TV18, "We have been low on IT that is why we have been sharing the view since last September. We do not believe that there is traction in these companies even in the current year for one of course is the demand is an issue which is very clearly coming out. European sales are reported at the Euro dollar rate of 1.1 or less than that."
"The recruitment is not exactly so robust as it was in the past few years. So, running at a profit earnings (PE) of 17-25, the room for growth of share price is very limited. If there is a severe five to seven, ten percent more correction, they become attractive buy. When scepticism runs deep and people want to sell out and this is also an overowned sector. Institutions own it a lot of these IT stocks. If and when there is a more severe correction, there is a entry point, but today as you sit here, I do not think it is a great entry point given other opportunities in the market," he said.