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.
