Don’t expect big returns from tech stocks; bullish on Aavas Financiers: Ambit Capital

Do not expect big returns in the technology stocks, said Dhiraj Agarwal, co-head equities at Ambit Capital, on Monday, adding that IT stocks should fall a bit more before they become a buy.

In an interview to CNBC-TV18, Agarwal said that his firm would not buy tech stocks now. However, prefers Aavas Financiers in the home finance space.

He said, “We have maintained that in the affordable home financing, the better way to make money is to buy financers rather than real estate companies in the affordable space whereas in premium space it makes sense more to play through real estate listed stock.”

Talking about LIC IPO, he said that any cash provision for the initial public offering (IPO) would be done by now. “Much has been talked about the fact that people are selling a bit to create cash for participating in LIC IPO and these things are always difficult to justify or corroborate fundamentally; maybe some cash has been created to participate in LIC IPO, but if that is true then by and large that process will be done,” said Agarwal.

The firm is a bit cautious on capital goods space as select state governments are struggling with finances.

For the entire interview, watch the accompanying video