IT may have bottomed out; watch out for cement, rail stocks | The Week on Dalal Street

On IT, Singhal feels that valuations have moderated somewhat and given the strong order pipeline, the worst may be behind for the sector. He is bullish on mid-IT stocks in particular, and also on midcap cement shares and railway companies.

The reason for the sharp sell off in L&T Technology Services is that shareholders fear that dividends could reduce going forward as the company has forked out a third of its cash to acquire parent L&T’s Smart World and Communication (SWC) business. High gold prices are hurting Titan, but at the same time the rally in precious metals is working to the advantage of MCX.