SP Tulsian maintains positive bias on midcap IT stocks
In an interview to CNBC-TV18, market expert SP Tulsian shared his reading and outlook on specific stocks and sectors.
Shares of IT companies traded negative on Tuesday, with Index heavyweights Infosys and Wipro falling between 1-2 percent.
"This is just a sentimental effect because we have seen the rupee has strengthened in the last 3-4 days from closer to 72 to as low as 70," Tulsian said.
If you take a call on Infosys, ITC, Wipro, HCL Tech, they have really gained from the currency strength or weakness because they have all been following a prudent hedging policy, Tulsian added.
"If I take a call probably because you need to have IT stocks also in your portfolio, so we will be looking more for the midcap IT," he said.
The midcap IT stocks are really holding the higher potential, Tulsian said, adding that the stocks such as Hexaware, Tata Elxsi, Mindtree or Persistent Systems or L&T twins are looking good because of their better business vertical, better bargaining power, growth or expansion of the business seen in all these business models.
"So, we are keeping positive bias on the midcap IT stocks rather than the larger ones," Tulsian said.
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First Published: Dec 19, 2018 4:25 PM IST
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