Expect lot of pain in IT space: Bandyopadhyay

Sudip Bandyopadhyay, Director and CEO of Reliance Money is of the view that there is going to be a lot of pain for the IT sector at least for another couple of quarters.

Bandyopadhyay told CNBC-TV18, "The IT companies will not be the right place to look for the market because they have a big problem coming because the US market still gives them about 50% or 60% of their total revenue, they are dependent on BFSI and they will be in trouble for some time, they have to really work hard to compensate the loss of businesses, which definitely they are going to see. Some of the high-end businesses and some of the spaces where there is a distinct cost advantage, they may attract a little more business but they will suffer definitely because they will loose many of their clients. As far as the rupee is concerned, they are expected to benefit but I think most of the companies would have hedged their positions and the rupee depreciation benefit will not be apparently clear in their financial results as far as this quarter is concerned. But going forward and there is going to be a lot of pain for the IT sector at least for another couple of quarters."

Source: MoneyControl