Prefer largecap IT over midcap IT: Hemindra Hazari

Hemindra Hazari, Independent Market Expert told CNBC-TV18, "IT by and large is an issue. If there is a slowdown in largecap IT then not only will it have an impact on IT company valuations but will have a major macro economic impact on India because balance of payments is supported by significant IT revenues which comes in. So, if you are having a threat to your IT in your largecaps which form quite a bulk of your inward remittances or services then it may cause and result in a problem in the balance of payments which becomes a very serious economic issue for India. So, this is something which economists also should take note of and not just IT analysts."

"Between the largecap and midcap IT in this context given the way you are having anaemic global growth and which IMF also has reiterated and has lowered global growth I would still prefer going in relative with the largecap IT as compared to the midcap IT. I believe in India at least going forward the domestic cyclicals are going to continue to disappoint, although IT companies earnings and topline may decelerate. While I am not so sure of domestic cyclicals because I expect the domestic economic situation to further deteriorate," he said.