Prefer largecap IT; Infosys, HCL Tech top picks: Mayuresh Joshi

Mayuresh Joshi, Fund Manager (PMS) at Angel Broking told CNBC-TV18, "The currency movement that creates some amount of headwinds with the kind of headwind that you are probably witnessing even in terms of how Q4 will pan out in terms of discretionary spending, these are known facts for the market. Largecap IT is something that we continue to prefer, our own take is that a lot of these largecap IT companies have done a lot of client mining exercises that is going to create the topline growth significantly over the next few quarters." "If you look at the utilisation levels for a lot of these IT companies, there is sufficient headroom for companies like Infosys to actually show an improvement of 300 basis points odd in utilisation level. HCL Tech has decent utilisation levels; the TCV wins in excess of USD 1 billion odd augurs well for the company," he said. "Valuation again is not too demanding, so our own take is that you should get a reasonable cross currency growth. If you individually break it up across product segments and even in dollar and rupee terms it should be much better than what Nasscom has predicted. So, clearly largecap IT is something that we prefer and Infosys and HCL Tech would remain our top picks."