Prefer Cyient, eClerx to largecap IT stocks, says Buoyant Capital

The third-quarter numbers are making a positive reading for the IT sector. IT majors Infosys, TCS, Wipro and HCL Tech have reported surprisingly good numbers for the December quarter on the back of large deals. In fact, for TCS it's the best Q3 growth numbers for the last nine years and for Infosys it was the best Q3 sequential growth rate in eight years.

However, speaking in an interview to CNBC-TV18, Jigar Mistry, Co-Founder of Buoyant Capital said that he prefers the smaller players in this sector more.

"The way we prefer to play IT has historically been not through largecaps but something like Cyient or eClerx Services, which forms part of our portfolio. So for ever large company, which is rightfully valued at a much higher valuation, we have quality medium cap businesses which are available at a fraction of a valuation and they are still very meaningful in terms of what they do,” he said.